ALW2 was released on XBox Live Indie Games channel, and was a collaboration with DigitalDNA games. We used a custom engine built on XNA. The game spent over a year in the top 10 best-selling games on XBLIG, and to date has sold over 500k units.
The art style was a product of practicality. All the level texturing was done using only lighting, it was baked into the diffuse textures in Mental Ray. This allowed us to iterate the level design without destroying a lot of manual UV work. Detail was added using additive texture placed into the world. A fair amount of work was involved to accommodate the Microsoft avatar models in terms of weapons and animation.
See the game in action as played by youtube’s SeaNanners (warning some profanity):
Sole Artist & Level Designer
Digital DNA Games
August 8 2012