Nightmare Teddy has also been revealed, but I can't say I'm too thrilled with him. He's a bit too scrawny clumsy looking for my tastes, particularly his feet and arm holding the figure. The original Teddy sculpt was genius simply because he looked like your average teddy bear with a horrific head and claws.
He brought up the new Avatar and Nightmare forms for Malifuax and, although not explicitly, implied how they fit into the existing game. From what I gathered, your crew will start out as normal with your master, totems, minions etc. Then, once certain conditions have been met, you can advance your master to either their Avatar or Nightmare form. Eric made it clear that these new forms have been designed to have alternative abilities to their original, not superior abilities.
The best comparison I can think of is the Prime and Epic Warcasters from Warmachine; different stats and abilities, but not necessarily better. Eric also talked about keeping Malifaux as a small skirmish game (6-10 miniatures a side) and the Avatar/Nightmare forms complement this, giving plenty of miniatures to choose from while not crowding the game with too many figures and rules.
I'm a lot happier with Wyrd after hearing this. I don't mind games companies moving their storylines along, infact some companies, Privateer Press for instance, do this very well indeed. Moreover, I was concerned about the situation arising where you're playing a game with characters that have been killed off two or three books ago. And if that sounds unrealistic, how many of you out there bought all three Valten figures for Warhammer? I don't even think his rules are in the latest Empire book!
Remember this guy? No? I'm not surprised!
Having seen Wyrd's release schedule for GenCon, Twisted Fate looks like being a much bigger release than Rising Powers was. Hopefully we'll see the remaining models from RP released along side the new ranges. I also hope that the Twisted Fate doesn't invalidate players not using the Avatar/Nightmare miniatures i.e. you'll be able to play normal Seamus against avatar Lady J.
Still, looking forward to the new book!