Player animation is something that I think we can all agree needs a bit of love. So we've switched over to Mechanim. This means we no longer code our animation system in code. We use an nice friendly editor.
This allows us to alter the animations nice and quickly, visually, logically. Did I mention that it's really easy too?
[video mp4="http://files.facepunch.com/garry/home/2014/April/29/17-46/13.mp4"][/video]
The mechanim stuff has a bunch of cool IK stuff built in too. This means we don't have to animate things like the player turning to face something, or looking up and down. We can do it in code - which makes it look a lot smoother. We can even place the hands and feet on world objects. This opens up a lot of possibilities for the future. Here's what it looks like when we force the player model to point at a cube. This isn't one of the possibilities.
[video mp4="http:///files.facepunch.com/garry/home/2014/April/29/20-49/m17d.mp4"][/video]