At the moment, I'm laying out the levels manually in the editor. If time allows, I'll look into programming procedural generation.
That's what I am doing as well. I know I could do make my levels procedurally pretty simply, but I want to make sure I finish as well as leave room to expand the game, Eventually I might throw in a level editor. Who knows?
Yeah, I'm trying to keep my scope small enough that I can complete my entry, but also big enough that it makes for an impressive gameplay experience.
