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I've heard that eastward uses 3d lighting (don't know how's that possible)  and textures are affected by lights. But still they made sprites with some basic shadows and highlights. But I think I could get a good result by adding unity 2d lights on dark scene with little ambient lighting,  making lights from custom Sprite shapes and animating them and then few Effects like bloom over it. I will also try adding basic normal maps like only 5 color map for (left, right, front, top and down) direction to test if looks better. 

Thank you so much man! And cool extension BTW :)

Hey, thank you, and good luck with your project! 

I did a little more digging and found this video. It seems like they built the whole game as a 3d environment and placed everything precisely to make it look just right when looked at from the front through an orthographic camera :o

WTF! How did I miss that video. That few seconds of camera tilt explains everything. You just cleared my confusion of over a year. So, this means that their environment is using z axis but characters are only moving in x and y. Must look weird in viewport :)