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No, you aren't too far off! it's true that's the intent; however the max usable room size should remain big as the game will escalate. For the early game however, it's definitely what it's going for. But it's not a total puzzle-aimed game.

If you want, you can try out the included level editor and see if you can come up with some cool rooms! If you share them I'll play them for sure.

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https://www.dropbox.com/s/m4it1npbkp1v4e4/Small%20Concept.bawb?dl=0

Here's my quick concept. The Gryphs are walking a bit too much by default, so it would be nice to have a kind of wall that only lets projectiles through. Spikes are there so you can't safely use cover. Rather than room size alone, I guess it comes down to condensing level design so that there's less walking and projectiles don't fly for too long.

I see what you mean, the experience is definitely condensed there though I feel like there's less of a chance to get caught in crossfire, which I think is interesting to maneuver through.

You should use Water for tiles you want to be able to shoot through but not walk!