>>324333625
looks like they're using the "until you fall" combat flow, which is good. That's literally the only game that has done combat in vr correctly. 
They seem to -look- like waggle right now due to not smoothing jitter for their demo video ( and they need more expressive people to record shit for them) but it's promising. 

Targeting and strafe features are a must for an mmo with stick movement.