I know the game is named Punch Man, buuuut...

I gave him a shotgun!

I've also reverted the graphics to the old style. I might keep it that way since I suck at making art :P
I added code for procedurally generating the environment as the player moves around. At the moment all it does is generate the ground tiles and very basic buildings (based on the dungeon generator.).

Surfing the intert00bs I stumbled upon a sweet animation program named Spine. The great thing about Spine is that it let's you create bone based animations AND it has a Unity plugin(!). Having your animations stored as bone transformations instead of using sprite sheets means that you can do animation blending and even physics based animations as you would with 3D models (== awesome!)