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 also found the commands to be clunky. If I'd stuck with it I would have learnt the most important combos but it's not as intuitive as Brothers In Arms. Two squads seems to be the best way to do commands. I wonder if voice control could be used to implement flexible control over a better number of different units; if it was properly done so you seamlessly barked out orders then it could be great (but not for other people in the room).
Better AI would help too. I shouldn't have to tell them to be aware or take cover. Even if a real commander would do this, the complicated command system means it's too fiddly. If I could shout "get down" or "take cover from the east" and have them jump to it then it would be a lot more immersive.
That's what a lot of it came down to - issues breaking immersion. Reading through command menu options breaks immersion. Having a menu pop up and awkwardly scrolling through to enter a vehicle breaks immersion. Have a squad mate die because he didn't dive into cover, getting sniped at half a mile by someone with an AK47, having a vehicle bounce and vibrate because the clipping doesn't work, finding moving and turning clunky, robotic voices ... I really admire what Arma is trying to be but there's just too many little things that stop me from getting into it.