The Arma III Website has an update from Bohemia Interactive Studios on the animations in their upcoming military shooter sequel, describing how they are using three optical motion capture systems, including high-end Raptor-4 cameras from Motion Analysis Corp (thanks Slippery_Jim). They offer an interview with Zdeněk Vespalec, talking with the game's animation lead, and offer this trailer showing how this all looks in the game.
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I think you've put your finger on my problem there. Not the patronising reference to consoles (of which I own none), but the "move across map, sit here, switch ammo type, light camp fire and close doors" bit - this doesn't sound overly complicated to you?
I like the "freedom, realism and massiveness in this game", what I don't like is freedom, realism, massiveness and immersion breaking issues. If they got rid of the last of these, Arma would be great. As it is, it is trying to bite off more than it can chew and trying to do things which are too complicated to pull off. It's not the game that's too complicated, it's the user interface. When you're pinned down, trying to achieve fire superiority while reading a list of commands to order your squad to fight properly isn't freedom, isn't realism and isn't massiveness, it's awkward and very unrealistic.