For transparency I just ask for a bright green or blue background then use GIMP.
For animations I get one frame I like and then ask for it to generate a walking cycle or whatnot. But usually I go for like… 3 frame cycles or 2 frame attacks and such. Because I’m not over reaching, hoping to make some salable end product. Just prototypes and toys, really.
Use Google Nano Banana to generate your sprite with a magenta background, then ask it to generate the final frame of the animation you want to create.
Then use Google Flow to create an animation between the two frames with Veo3
Its astoundingly effective, but still rather laborious and lacking in ergonomics. For example the video aspect ratio has to be fixed, and you need to manually fill the correct shade of magenta for transparency keying since the imagen model does not do this perfectly.
IMO Veo3 is good enough to make sprites and animations for an 2000s 2D RTS game in seconds from a basic image sketch and description. It just needs a purpose built UI for gamedev workflows.
If I was not super busy with family and work, I'd build a wrapper around these tools
Otherwise I have to touch up a hundred or so images manually for each different character style… probably not worth it