The second concept! This concept shows that weapons would indeed have light bounce off other surfaces such as characters and even the background!

I wanted to try enhancing the lighting for Castle Crashers to make it look more up to date with some other indie games like Wonder Boy The Dragon's Trap or Streets of Rage 4. This was made to be a illustration, not a actual game mod.

If you are interested in seeing more of Castle Crashers with Dynamic Lighting i recommend taking a look at my other post on the account.