This week I've been working on the backend/functionality for NPCs and I'm quite happy about the amount of progress so far!
Characters are created with a new object type where you specify all the clothes, gear, equipped items, hair, etc you want them to have and then can be placed in the level editor. They have plenty of unique idle animations, look around, inspect their items and will look at you when you're standing next to them or talking to them so they aren't static like most objects!
You then create a Dialogue which will be opened when the character is spoken to. The dialogue contains a list of potential messages for the NPC to say, and a list of clickable responses which chain together more dialogues. The text is animated and can have pauses inserted for emotional moments, although it can be skipped with F or disabled entirely in the options menu:
Now here's where it gets interesting: Every message and response is optionally given a list of Conditions and Rewards....