Hey everyone!
Time as usual has been creeping by at lightning speed, but development has continued strong. The goal was to get out a release by the end of August, but a few more things need to be worked out before we'll be able to do this. It should only be a few more days at this point, but I wanted to get the word out on what to expected. The only thing holding back a release right now is instructional information within the editor (so you aren't too lost when working in it) and adding more placeable content (i.e. buildings, props, etc.).

What is coming?
I've decided to release this new beta build (0.8.0) in a new branch alongside the current released version (0.7.3). I don't want to replace the current steam build version, losing some playable content, since this new beta build won't come with the same scenarios and will be limited to the new scenario editor. The purpose of this release is to get feedback on the new mechanics and editor, to really polish and nail it down prior to making the swap officially (I don't anticipate this will happen until most of the gunship campaign sorties are completed and released).
I wish I could have the new sorties be released with this too (for the AC-130A variant), but I need to spend some more time testing and polishing them before they get released. Either way, it'll be nice to finally have the newer version out, so I can proactively release new content as it becomes available (like we did in the past, before the old code structure started to break down). So, you can expect to see the new version be released in a new branch within the week and then continue to see more content updates after this until the game is done.
Preview of the Editor

Although you will have this real soon, I'll give a quick rundown of the different objects you can create in the scenario editor.
Set the scenario's name, author, level/map, briefing, and image (I'm actually not sure if I should allow this one). This will provide some generic information regarding the scenario that you will be able to see during selection in the scenario menu.
Place Infantry, Vehicles, Helos, and Emplacements; then alter their parameters. This is where you can set the specific units and their initial states upon starting the scenario.
Place environment objects (buildings, boxes, trees, etc.). These include destructible/indestructible items that can be set to have specific reactions to munitions (i.e. boxes that explode or catch fire) and can also be tracked as specific objectives.
Place splines for vehicle paths and/or road meshes. Vehicles can use splines as routes to take, which can also double as visible roads as well.
Place logic objects to drive scenario action. Create spawns, timed triggers, trigger volumes (overlap), set gunship waypoints, radio transmissions (currently only set to provide text radio traffic), and objectives. These objects give life to a scenario and allow you to shape the scenario however you'd like.
Place note objects. These are only visible in the editor and are meant to allow creators to add important information within the editor.
These cover the basic functions required to create scenarios and it's all done within the game itself (not a separate program or anything). There have been several challenges in this as it relates to unreal engine, but I think in general it is in a good spot. I've found several solutions to minimize loading/building times and as these features get tested, I'll continue to polish them to improve the user's experience.
As a general note for the editor, going forward if any changes are implemented to this, I'll be very careful to keep it from breaking already built scenarios. Based upon how scenarios are saved and built from their save files, I don't foresee any function changes that would really impact that save data, but maintaining the integrity of these files will be a high priority, so your time/work isn't getting wasted.

What has changed?
Needless to say, everything has been reevaluated and improved from its previous state. Most of the systems that drove gameplay were approached differently, focusing on performance and structure, resulting in a whole lot less nuance, keeping things clean and performant. This was one of the great woes of the previous build, but the new approach has made development much easier. I tried to put together a rather robust list of differences, but I'm sure there are plenty of things I've left out unintentionally:
General Improvements
Implemented proper LODs to allow much more
Added adjustments for anti-aliasing method and quality.
Added a dynamic resolution option.
Reworked input binding system to be more simplistic and functional. Controls generally were minimized to only critical gunship functions.
Reworked mouse input systems, allowing for much better control in all control modes.
Reworked joystick input system to be more robust and solved game crashing issue with disconnecting devices. Now joysticks can be disconnected/connected in real time, and the system will recognize the change.

Infantry New Additions
Reworked locomotion animations to provide 360 coverage. This gives a better animation transitions when AI is changing direction while moving or starting movement in a different direction from where they are facing.
Added a bleeding mechanic. AI will now bleed after sustaining a certain amount of damage and their health will continue to degrade until they die.
Improved ragdoll physics, allowing infantry to respond better to impacts even after they are killed (this was also optimized).
Added infantry formations. We are now able to designate a leader and followers, to allow them to follow in formation. As leaders get killed, they are replaced by another in the formation.
Improved AI Reactions to impacts. They are a lot more responsive to their environment and what is happening to them, making them much hard to hit as they attempt to dodge your incoming rounds.
Added infantry reloads. Reloading will cause Infantry to reload their weapons and reposition before engaging again.
Vehicle New Additions
Added several states of destruction for vehicles. They can be disabled, lit on fire, and catastrophically destroyed.
Components on vehicles can be broken off with impact.
Revamped and implemented a robust collision detection system that allows vehicles to be more competent while pathfinding.
Infantry will now dismount when damage is taken or vehicles are disabled.
Gunship New Additions
Restricted the sensor's movement to the gun's traversal range, so no more "GUN MISALIGNED" warnings. This has helped lessen the required scope in map creation, while also keeping the player focus and engaged on the action.
Gunship movement is "scripted" to keep focused on the action of the scenario, but you are able to adjust the orbit center a certain distance from the initial waypoint. This allows you to extend when needed, while prevent you from getting too far from the action.
Munition ballistics are simplified to illustrate the sophisticated fire control systems in the gunships. Although tweaking the guns was a common procedure for the crew with early gunship variants, this is simulated to already be done. Where you aim is where your rounds will hit.
Gun's accuracy is now influenced by the built-up heat in the weapon system. More heat = less precision, so not overheating your guns is important beyond simply being inoperable.
Sensor can now track moving targets. While looking at a target, activating the sensor lock will lock onto that target until unlocked.
Activated (on point) lasers will also lock onto moving targets, similar to the sensor.
Air crew feedback/callouts are implemented. This means, crew members will make talk via intercom to respond to things happening on the ground, while also sometimes making "chatter" regarding their responsibility on the gunship. The system for this is developed and easy to add to, so although initially only a few instances (random chatter, direct hit callouts, infantry KIA callouts, taking damage callouts, taking fire callouts) are implemented. As I figure out more ways to improve this, they will be added. This is an important feature, because it helps sell the immersion of the experience. *This can be turned off in the settings.
The AC-130W will make its appearance too.

SFX & VFX
Reworked all the VFX impact to look more realistic, based upon the type of munition it is.
Added high quality, real-world gunshot and explosion/impact sounds.
Optimized both SFX and VFX to be able to handle much higher counts than before. Previously, when the VFX limit was reached, you could see already drawn VFX disappear as those systems were reused elsewhere - this no longer happens.
I'm sure I've missed some stuff, but at the least, this hits the top-level items that make a big difference.
What comes next?
Now that we've covered what to expect in the next update, the question then is what is next?
Steam Workshop for scenarios. This is currently the big focus since this alone will provide a substantial amount of playable content. There is quite a bit required to implement this, but this is a high priority right now.
Sorties for each gunship variant. As I've mentioned in prior SITREPs, these will provide a structure (kind of a "campaign," but not exactly) to organize scenarios for each gunship in the conflicts they operated in. Basically, a "sortie" will consist of 3-5 levels/scenarios, that will be a continuous of that given sortie. These scenarios will need to be completed sequentially (to follow along with the short story of the sortie) and will unlock the next gunship variant when the sortie is completed. I should be able to release the first sortie fairly quickly, after polishing those scenarios a bit more.

Steam deck support. I haven't been able to really work on this, because I don't have one... but I'm planning on buying one for this purpose.
Improve Boats. I need to expand their implementation and improve their destructibility. I feel their implementation is fairly limited and need them to be more interactive when being shot. This is a relatively small piece (will mostly pertain to the Vietnam era), but it should feel better than it currently does.
Animals. It's worth mentioning here - the AI is already implemented for these, but I need to spend more time on modeling and animating a variety of different animals. I think seeing additional heat signatures (like birds) in the jungle would add an additional layer of immersion, helping the environment come more alive.
As usual, I appreciate everyone's support and patience as I've had to do a lot behind the scenes, without providing much value to you. In many ways, I do feel like this new implementation is a "Project Gunship 2" in certain respects, but I'm glad to see the quality of the game improve over the years.
I'm confident that we will reach a 1.0 version before the end of the year and will continue to work hard on getting there. I look forward to dropping this next release, getting your feedback, and continuing forward with development. Thanks again and I hope you have a great week! -Sklor