Hi Blue Hatter, and welcome
Quote: "is it possible to use 2D sprites instead of 3D models"
Yes kinda in a way, a few members tried using sprites/decals on a "flat" like plane and the results were not
very good. So the idea never progressed. And remember, the rest of the environment is still 3d it just
didn't look good in the end. But don't let that stop you from trying, you may come up with something
not done yet that works
Quote: "create text boxes in the game for characters to "talk" and help drive the story along"
Absolutely, fpsc if perfect for that. Do a search on "text based stories" " conversation scripts" or
something similar. A member by the name "The Storyteller 01" did a lot of scripts just for this type
of game play. Here's a link to one of his threads...
https://forum.thegamecreators.com/thread/199256
best
My games never have bugs. They just develop random features..
Lots and lots of random features...