HTML5 provides capabilities for building games in a cross-platform and lightweight manner without dependencies. It includes powerful APIs like the canvas element for 2D drawing and WebGL for 3D rendering. Common elements of HTML5 games include using <canvas> to define a drawing area, a 2D or 3D API to render shapes and objects, physics engines to simulate movement and interactions, and technologies like local storage for data caching. Tools like game engines, libraries, and bundlers can help develop HTML5 games.