I want to make a game with my kids for fun that includes representations of them - I wonder if there is a tool for creating 3D caricatures, kind of like the Mii Designer on the Wii platform. I could either design the characters myself by tweaking parameters, or (bonus points) it would be beyond cool if there was a way to do it based on a scanned photograph . . . thanks in advance!
there’s no program I am aware of that automatically creates cricatures, but you could use 123Catch to acquire your kids 3d models, retopology the obj files, and use it for your own game 
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Maybe you check http://www.reallusion.com/crazytalk/3d-face-pipeline.html
CT8 pipeline with the combination of iClone Character Creator you can make 3D character Heads from Foto and put it on a 3D character
for create a toonish style you have morphslider in Character Creator.
But you need iClone, Character Creaor and CT8 Pipeline otherwise you can not make and export a 3D Character in FBX for Unity .
iClone has many motion also useful for Untity, btw