I would disable the antialiasing in sprite import settings next time.
Ah, what does this do? I'm new to this, I will note it down.
Antialiasing makes the edges smoother but when you are doing pixelart it just blurs all the sprites.
Ahhh, that's why. I didn't have time to find the cause for the blurriness - this is awesome to know for my next game. Thanks mate!
