By 2 colors, you mean exactly 2 colors , or 2 colors including their shades ?
By 2 colors we mean 2 solid colors exactly. Shades count as separate colors.
How does the two colour limit work if I make a 3D game, is that per component or model/character e.g. warrior, armour, shield, sword could be seperate models elements but in a sprite they would be one?
In the past, I've gotten around this by "Pixelizing" my game and setting all 3d models to "Unlit"