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Really enjoyable so far, looking forward to see what you do with it.

A few things though: Really annoying to have the ammo boxes taking up slots unnecessarily, they should just get added to your player's ammo total. If you want inventory management to be an aspect of the game, perhaps make them take up space in the inventory just keep it out of the hotbar. I love the suggestion someone said in the thread about enemies having an image displaying their last location, very cool. I wish there was a way to throw C4, as it stands there isn't an easy way to get an enemy to walk onto it. Does the grenade launcher actually explode? There is no indactor of this as far as I saw. Also the text saying "Retreating!" Was still visible and moving even though the associating enemy was no on screen, is this intended?

Thanks for the comment! Inventory changes are already done and work like you suggested. I'm not going to release another version until the next demo day though.
The grenades are supposed to have a short animation when exploding but I think they don't play properly. Thank you for pointing that out.
The text appearing outside of the FOV isn't intended indeed.