Hey guys!
We have some good news and some bad news o_o
The bad news is we're going to spend another week on this upcoming release :(.
The good news is that in the past few days we've made some exciting breakthroughs that should allow us to replicate our hand drawn art style in real time 3D, thereby dramatically cutting down the time on future animations. Best of all, the setup time is a fraction of anything required for MATM (in part to all the leg work we did last year converting to Maya, as well as having a simpler art style), and it's completely compatible with our current code, including our dynamic physics and particle liquids.
The above image (high res version here) is a very early version running in Unity, shown as a proof of concept. We still have work to do to weed out the 3D look, so expect improvements. And don't worry -- I intend to animate in a style that maintains the charm of 2D sprites.
Some of the bonus benefits we'd gain include:
I'll explain more after the upcoming release, but my conservative estimate is that once this is rolling it will allow us to produce animations and H scenes three to five times faster, and will save us (poor Limbo and TK especially) a lot of tedious work. We'll be working on this in the background, so hopefully this is the only interruption you'll see. That being said, we should be able to make the transition quite quickly.
Also good news: we have some new things to show off!

3D Combo Animation Mock-Ups
TK and I have begun making 3D mock-ups for Onyx's combos! Shown above is a little example I rendered out. Side note -- the fact that we did this and more in one day is what gave me the brainwave to investigate 3D again.
Limbo's the innovator when it comes to 2D stuff, but I can't prototype in 2D like he can. So, we're building a sort of pose library for Onyx and I'm testing ways they blend between one another so as to construct organic looking (and gameplay functional) combos.
As you can see from the animation above, the game will feel very different than it does now once we expand on Onyx's move set. I intend for us to really focus on this after the upcoming release, as I think having Onyx feel great to play is instrumental in making an appealing public demo (our next major milestone).

Biohound Concept
We have yet another enemy concept to show off this week! This guy is the first of the potential sewer enemies we've gone into detail on -- we're calling him the Biohound unless we get a better idea :D. As you can see, he has a pretty great utility that I think we can do some really innovative stuff with.

Uber's Back!
In case you were wondering where all the environment art has been this past month or so, Ubercharge was away finishing his thesis for his master's degree. He's back now and has been working on getting our environment processing workflow straightened out for production. This mainly involves unifying and organizing our post processing scripts and making a streamlined method for exporting all the various parallax layers.
He has also finished the parallax work on the Void slums map, which really adds a lot to the scene :D. Check out some screens below:
Sorry for the delay, and please ask questions about the 3D stuff if you have concerns / are confused or want more details :D.
UPDATE (7-12-19)
Here's the latest 3D Onyx progress :D.

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