Modern computer game engine has evolved to become a complete suite of virtual world constructing tools and runtime environment. The latter is usually a tightly integrated framework of 3D rendering engine, scripting engine, physics simulation and networking. This framework design as well as individual component implementations decides the general type of games that could be composed by it. This article proposes a game engine framework called ParaEngine for developing games based on distributed game world data and logic. Its framework design is based on a modified version of simulation theory about the human brain. It has long been observed that our brain is both a distributed computing environment and a theatre of multimedia. The analogy of human cognition to simulation system has been applied to the proposed game engine to construct distributed Internet games. The implementation is illustrated in an RPG game demo called National Heroes.