Code: MAX-FX is coming together. The level editor, MaxED has been developed into a versatile and powerful tool, and the progress is awesome. We now have all the other tools in place as well (ParticleFX and ActorFX are done) and we can concentrate on the game content. We also have solid D3D support, and virtually all the accelerators work without a glitch. In addition to the normal Pentium/Pentium II/Celeron support, we're optimizing the tech for AMD 3DNow! (man, we're getting great performance out of the AMD processors as well :)
Maps: Now that the tools are working our mappers are doing brilliant work with the geometry and lighting. We've been designing the gameflow and content of the maps and the mappers are turning that vision into actual gameplay. We're also planning a field trip to N.Y. to get the atmosphere of the maps right, just hoping that our mappers will get back in one piece :)
Art: We spent a couple of months finishing up the tools for the character animation and skins (you can now export skins directly from 3DS Max, and then manipulate the skeleton vs. skin within ActorFX), and the modellers have now started to work finalizing the character skins. While the tools were under development, the art guys worked on other art, weapons items etc. The art team is constantly cranking new textures as well.
Story: Max Payne's film noir storyline has been finalized. Max is definitely going to have a rough time in the Big Apple and a lot of people are going to get hurt along the way. The graphic novel art is looking so good that we just had to expand our plans on that, which means even more dark art and gritty dialogue than originally planned.