Awesome pixel art, a very unique stylization in the characters. I was wondering how did you make the glow in the in game screenshot? I'm struggling with creating an atmosphere in my work and i think some subtle lighting would help.
I do most of the lighting directly in Photoshop as part of the sprites, with some exceptions, but you can create similar effects in engines. It's just quicker for what we're doing only having one artist and all. I put together my steps below going from unlit to adding the flame & smoke sprite, adding an orange glow that blends into the background and lastly adding rim light to make objects pop and the light source feel like it's part of the scene.
The overlay could be replaced with an in engine light for a similar look, and then you could add an animated sprite or a texture map to get the light to actually appear to affect objects in the scene.