You should go and buy Zeno Clash immediately. It is one of those indie games that reminds me why I love this industry. Deeply imaginitive, a terrific art style and some great gameplay.
Indie developers ACE Team have taken some risks with this and the first-person melee combat is nicely handled. They used the Source engine which I’m familiar with because the last two games I worked on were based on Source. We had trouble with melee combat in The Ship, we didn’t have punching but there were several club and sword weapons. Judging distance and range can definitely be a problem in the first-person perspective and there are times when it feels awkward in Zeno Clash but their block, counter and combination combat system for hand to hand works really well for the most part.
The story and the art style are also great, here is my full Zeno Clash review. It only costs $20 (£15) so seriously get on Steam and buy it. With publishers applying an ever tightening choke hold on the industry there is a danger that creativity and risk is lost from games. It is these qualities that really drive things forward and for me Zeno Clash is a great example.