2D Sprites in 3D environment

Hello.

How do I add a 2D sprite with capsule collision to my 3D environment?

 

After playing around, I created an Asset with a Texture type of Sprite and then I dragged the Asset into the screen.

 

Yep, that'll do it. Unity creates it all for you. If you want to do it manually, then just (1) create an empty GameObject; (2) add a SpriteRenderer component; and (3) assign a Sprite texture to the sprite property of that SpriteRenderer.

 

Do you need a Sprite Renderer component to use display animations from the Animator?

 

If they're sprite animations, yes. If they're skeletal animations, then you instead need something like a SkinnedMeshRenderer (hooked up to the skeleton you're animating).