We're finishing up our first fully animated combatant NPC. We've been able to beat up on them for awhile now but not in a finished state with hit reactions and combat effects. Next week should be particles and impact effects to really bring it to life.
Mike did some storyboarding in his free time. Cutscenes are a ways off for us but it's good to know where the story will be heading when we're designing out environments and characters etc.
Not much to say this month since its just been all animating but next update should be a lot of gameplay to show :)