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Not a game.

But a nice simulation :p.

I can understand the 64x64 restriction. But, in my opinion, I think that you can improve your simulation by adding graphic details (difference between adults or childrens, for example), or by adding more "states" or "goals" to your characters (for example, psychological states).

The other idea is that the player becomes the "god" of this simulation, and can affect it. For fun :p.

You have a great concept but it needs more work :).