This was really interesting to watch.. A long time ago (whispers - 23 years ago!) I remember taking a trip to Arc Developments where my mate was working as a musician.. There was a job as a trainee graphics artist which I was going for. I came away from there with a test to animate a racoon walking through a forest.
I spent days on that animation trying to perfect the walking motion and it looked ok I suppose.. While I was at Arc they gave me some demos of some amazing silicon graphics stuff, one of the things I saw was a walking 3D robot and I was glad that the 2D game was still in wide use and that I had a glimmer of hope of a future as a graphics artist.
After I watched this clip I had a look at The Last Samurai and Turrican 2 on Youtube because they are the finest examples of 16 bit raster animation I can think of and of course they work in much more blocky resolutions thank this...
The quality even eclipses the Oddworld games, quite astonishing really - I hope the guy who wrote it gets plenty of cash.