Ever since we learned that there's a multiplayer, source-engine take on the Slenderman game in the works, I've been hoping see more of the game in action.
Just in time for New Years! Blacklight Studios (Ethereal Entertainment) have released a new update concerning Faceless which had previously won Best Upcoming Mod over on Moddb.
It showcases some creepy stuff, and their own take on Slenderman has finally gotten life. It's terrifying. It also reveals a bit of the story behind the game.

Some issues have arisen in some article that have been put up by Kotaku, and Joystiq regarding Faceless as well as some concerns towards the future of the project. So, please bear with me as myself, and some devs try shining some light on everything that has happened.
[Source: TMSGamer]
Faceless (Slender: Source) developers release a video of Faceless for Halloween. It shows their Slenderman model in action, as well as it seems to be from his POV.
What does this mean?
This is obviously not the actual model they're using. It says at the beginning it's just a test for the distortions you see upon encountering him.
Anyway, cool to see a little bit of new content, even if it's not much. :]
Who knew the mechanics of slender would make for one of the creepiest games I've ever played
I don't see how a guy in a suit is scary.
They should make him look more obscure and messed up.