When comparing Skyline vs O3DE (previously Lumberyard), the Slant community recommends O3DE (previously Lumberyard) for most people. In the question“What are the best 3D game engines?” O3DE (previously Lumberyard) is ranked 14th while Skyline is ranked 39th.
Specs
Ranked in these QuestionsQuestion Ranking
Pros

Pro Great tech support and friendly community
A growing community that is always helpful with dev response times averaging less then 24 hours. Often less than 12.
Pro Comprehensive WYSIWYG editor
Skyline provides a straightforward drag and drop development environment that can be customized to suit individual preferences. Playing the game and animating the scene can be done from within the editor at any time.
Future versions will allow extending editor's functionality with plugins and offer an official way of trading custom plugins.
Pro Highly affordable licensing
Skyline's commercial edition costs just £40, has no royalties or earning limitations and includes 2 activations per license purchase and a year of free updates.
Pro Runs well on lower end machines
Skyline can be run on a machine with 2GHz Dual Core CPU, 2GB of RAM and Nvidia's 9800 GT (or equivalent) GPU. While, obviously, higher specs are recommended, it's reasonable to expect around 60fps on small scenes with these specs.
Pro Excellent terrain editor
The Terrain editor is easy to use and will include features such as hole cutting.
There is a differed lighting render for internal scenes, which makes creating multi light and beautiful/atmospheric scenes so much easier.
All the tools for the terrain are in one place such as placing road/paths, vegetation, billboards, and the settings are easy to locate and change.
Planned features include:
Hole cutting in terrain and
Terrain paging.

Pro Low learning curve
Making a game in the current top engines is hard work, making something small and basic in Skyline is not. Easy to learn drag an drop model placement and editing supplemented with easy to follow video's on forum make the process straightforward.
Pro Full global illumination
Including image based lighting.
Pro Has a free version
A free version that's limited to non-commercial usage and lacks a few features is available.

Pro Impressive water render
Rendering of a water plane looks fantastic and is easily edited for different effects.
Pro Artist-friendly
The schematic editor is designed to make it easier for non-programmers to create games.

Pro Asset store
Not much in it at the moment but is starting to grow and will continue to grow with an increase of users.
Pro Constant development and regular updates
There are many additions to the engine that are on the road map such as multi threading and tree physics.
The feature list is constantly evolving with each user request and idea put forth.

Pro Support for custom editors
Skyline has a custom editor that gives the user of making their own tools for use directly in the editor to develop their games. All the editors are made using the Qt Designer and programmed in lua inside the engine itself.
Pro OSVR support announced
Open-Source Virtual Reality support is in development.
Pro More editor's
Shadow editor.
Weapon Class Editor.
Mesh Editor.
Advanced Mesh Editor.
GUI Editor.
Script Editor.
Environment Editor (volumetric clouds and day night cycle, lightening, ocean settings, height fog).
Particle Editor.
Path editor.
Schematic editor.
Navmesh editor.
Material editor.
Pro Lots of learning resources
The documentation is been rewritten and follows a structure like a course.
Introduction to > Level designer with examples > Artists
There is also video tutorials, video examples and video tutorial series been produced.
There are user created demo scenes, examples and more.
Pro Visual GUI/HUD Dditor
Making HUDs and GUIs has never been easier
Pro PBR Workflow
Full PBR workflow, your not stuck to Secular or Metallic it has both
Pro One on one private support with engine developers
Can contact the Skyline developers and they will always respond and help as fast as they can.
Pro No royalty charges and completely free
Pro Amazon has announced 3 in house games using it developed from Amazon Game Studios
As a proof of how much Amazon is committed to the project.
Pro Advanced VR support and VR Samples to bootstrap your project
Advenced stereoscopic reprojection to save rendering time.
Pro Landscape editor
Sculpting and painting tools for terrain and instanced details.
Procedural generation of terrain.
Pro Roads and Rivers tool
Built-in support for roads and rivers to ease the design of rich game environments.
Pro Free development license, including source code
Full source code for Engine Editor and every tool.
Pro Easy to create full realistic natural environments
Thanks to built-in terrain, time of day, ocean and volumetric fog systems. There is also a gfx pack with various environmental meshes, cloud, particles, materials and skyboxes.
Pro Very lightweight and scalable entity component system
Multiple entity contexts, reflection, serialization, replication, script binding, event bus (EBus) messaging, fully cascading prefabs (slices).
Every reflected property can be fully exposed in the editor with a customizable gui control and can be animated in the built in animation tools.
Pro Cloud gems
Online oriented plugins composed by both client, server and administration components to easily add various online capabilities without further work (es leaderboards, login, message of the day, downloadable contents).
Since version 1.7 they has been released at a steady rate.
Pro In-editor 3D modeling tool for fast level prototyping
Very advanced 3D prototyping tool with many modeling features and UV mapping support available. If you want you can build any kind of fully textured static mesh without relying on external tools.
Pro Total Illumination v2 Realtime GIobal Illumination
Realistic looking lighting bounces.
It doesn't require long offline precomputation times like other static and dynamic GI solutions based on lightmaps or other similar techniques.
Pro Uses AWS cloud
Other than common aws functionality it supports game specific Game Lift for autoscaling game servers.
Pro Slices a very powerful nested prefab system with hierarchical property inheritance
Modular workflow and flexible cascaded propagation of changes.
Pro Modular system
To easy add and remove modular functionalities to a project and easy share them.
Modules are called Gems and can contain code and/or assets.
Pro Very Flexible Base Shader with many built in techniques
Tessellation and Displacement.
Various Parallax Mapping techniques(POM siluette).
Translucency and Sub surface scattering.
Detail Mapping.
Material Blending.
Emission.
Advanced uv transformation and animation.
Pro Rendering of volumetric fx with full light and shadows support
Global environmental volumetric fog and/or hand placed custom shaped volumes with featuring full lighting and shadows.
Pro High quality free assets packs
Amazon made available a selection of triple A quality scenes filled with high quality assets.
Pro Specular reflection antialiasing
Implements the most recent technique available (published in 2017) from Anton Kaplanyan.
Pro Flexible uber shaders with cache and hot reloading
You can modify shaders while testing the game.
Shader files are modular and annotated to setup the material editing gui and filter out mutually exclusive options. All shader permutation are compiled almost instantly from the asset processor and cached for later use.
Pro Built-in Twitch support even by visual scripting
You can create games that react to keywords entered in a designated Twitch channel and let streamers to invite targeted viewers into their game sessions on demand with ease.
Pro WWise LTX Audio
It is still possible to use the non LTX version with few changes.
Pro Lua scripting with the built-in IDE
Built-in Lua editor with remote debugger to debug Lua scripts running in any device.
Pro Virtual file system with live reload on any device
Optimized versions of assets can be streamed live to any device connected over the network.
This makes possible to implement asset types that hot reloads reducing drastically the time to test new content and little changes on device.
Pro Every aspect of the engine is made with scalability in mind
Multiple grain of control over any kind of engine setting and various kind of Lod systems. Settings can be grouped and applied in batch.
Pro Is the first engine to feature SpeedTree 8
Pro Perforce versioning system pre-integrated with the tools
Perforce also comes with a free version for a limited number of team members.
Pro Cutting edge character shaders
Has skin shaders with subsurface scattering and weighted wrinkle maps, eye shaders with refraction parallax, hair with anysotropic specular reflections, etc.
Pro Order independent transparencies
A must for problematic things like hair , vegetation and scenes with complex solid transparent objects(es glass of water with ice cubes).
Pro Implements the state of the art for Temporal Antialiasing from NVIDIA Research
Special iteration of Temporal AA to battle the ghosting issue omnipresent in engines using other Temporal AA techniques.
Pro New Fbx Importer adds support for every software exporting in fbx
It now works for both static models and animations and support advanced setups(es lods and physics).
Pro Full HDR renderer path with output support for HDR tv standards
Updated renderer pipeline to leverage the full spectrum of precision, luminosity and image processing features of the latest HDR tv.
Pro Cinematic multitrack tool with full featured animation editing
Animation Spline editor supporting huge range of keyframing and tangent editing tools.
Pro Advanced in-game UI with 2D and 3D placing
The UI uses the entity component system so it's fully modular and easily expandable. The UI is easily skinnable and supports border scaling images (scale 9). Powerful layouting system supporting multiple screen resolutions. Being based on the entity system every property can be fully animated.
It is elegantly managed in a separate entity context so it doesn't get messed up with other kind of entities and their components like in other engines, but it's fully decoupled communicating with entities in other context on specific event buses.
Pro Full source code repository with updated development branch now on GitHub
See here.
Cons
Con Currently limited to targeting PC
Mobile targets are planned.
Con Free Version currently not available/severely limited when available.
The free version has massive amounts of features functionality removed, including the ability to compile anything standalone.
The free version is currently (as of November 2017) not available until the next major release.
Note: some of what is below is open to change, this is the coming set of changes.
The price will be jumping from $40 to £99.99 ($132.32) for the lowest tier able to build a standalone. This tier will not be able to remove the engine splash screen.
The next tier will be £199.99 ($264.66).
Con No C++ SDK
Con Small community
There is a small but helpful community that are constantly creating video tutorials and one member is creating a FREE ebook to make the transition to the engine simpler.
Con Still in beta
Not all features are fully implemented yet.
Con Lacks occlusion culling and lightmapping
This is been added in a future update, however a date of this update hasn't been given yet.
Con Some Legacy systems are still incompatible or not fit well with the new entity component system
At first it is common to try a feature and then understand that it is meant to work with the legacy system and not with the newest one.
Legacy systems get replaced or updated to work well with the new entity component system in every new version, but there is still some work to do.
One example for all Flow Graph visual scripting is meant for the legacy entity and Script Canvas is the visual scripting conterpart for the new entity system, but it is still not available at the moment.
Con No source code repository with updated development branch (requests for Github support currently pending)
You need to wait up to 30 or 60 days for fixes as they are shipped with the next official release.
There is no comfortable way to submit fixes and changes to the engine as the forum is the only tool for sharing code.
Con CryEngine with AWS plugins
