The update is now live on GOG and here's a quote from Madoc:

Ogre Screenshot

We're working towards some major features to support the rest of the story content and bring it to its conclusion, these are not ready yet though so in the meantime we've expanded on the arena mode and core gameplay with some really big improvements.

Initially we focused on longer term goals, thinking we would add some skills and arena features for a nice intermediate update. When it came to adding these features however we found that they placed demands on our animation and other systems that they couldn't meet. This led to the most thourough and extensive overhaul of our animation system yet. Improving animation and gameplay has been a constant and often fruitless struggle from the first day of development. Realistically we'll never consider it truly finished, but this latest iteration has certainly brought them to a new level.

As usual, the update took longer than expected. We've got a lot of stuff that's almost done and we would have liked to include it, but we don't want to keep you waiting any longer. The current version should be stable and brings a lot of big improvements. Over the next few days we'll be releasing a series of smaller updates as the rest of the features and content are completed.

There's a few incomplete things still, notably the lack of ceilings in ogre matches can on rare occasion lead to an unfortunate death. We will correct this ASAP.

Here's the changelog for version 0.6.4.3:

- Ogre matches in arena mode (more tiers coming)

- New Close Combat skill technique: Dual Wield

- New Shield skill technique: Synchrony

- New Shield skill technique: Ward

- New Shield skill technique: Persist

- New Shield skill technique: Endure

- New Shield skill technique: Mobility

- Added shield block stamina mechanic

- Added shield item statistics

- Added merchant hireling NPC in arena mode

- Hireling NPCs now come with various ranks and equipment

- Many new items (more on the way)

- Improved footwork and balance

- Improved combat stances

- Reworked all combat and most other animations

- Improved parrying and blocking

- Improved thrust accuracy and power

- Improved action transitions and dynamic posing

- Sped up recovery from falling

- Various improvements and fixes to combat mechanics

- Improved AI combat tactics

- Improved NPC equipment choices

- More variety in master level opponents

- Gave AI more human-like use of controls

- LtR swings are now easier to execute

- Various graphical improvements

- Analogue stick movement via XInput

- Numerous bug fixes and improvements

Best,

Bare Mettle

Overall I'm pretty pleased with the update, merchant hirelings in particular are a great addition to arena mode, however I'm finding that at higher arena rankings opponents with larger shields have just become a huge pain in the ass. At lower levels it isn't so bad, as Bucklers and the Novice shields are smaller in size and the opponent won't be so heavily armored. But starting from Adept and upwards combat against shield users becomes death by a thousand cuts unless you want to make risky large attacks in the hope of landing a solid hit or knocking them over.

Additionally a suggestion for arena mode would be the ability to create "loadouts" for different skill levels that contain an armor set, so rather than having to constantly shuffle individual armor pieces around if you don't have enough to fully kit all your characters you can just move a loadout icon or something from one character to the next and go back to fighting.

I don't really know if the arena mode is that important for this game. Personally I would rather see some minor but bothersome situations fixed (in maybe one larger update) then to see "a series of smaller updates".

I still get stuck with my torch at seemingly magnetic parts of the interior, happens with an equipped weapon as well.
There still is the chance that I move into a tight spot between a couple of logs/barrels - and then can not get out the same way again.
There are some more of these minor issues that might be more important (just my opinion) to solve then adding stuff to one play mode (arena) only.

Please, don't get me wrong: I like this game a lot - otherwise I would certainly not care to post ...