This is a new character graphic being designed for an upcoming animation project. You can see the artist working in Adobe Illustrator. They have sketched out the design first on paper, and then imported the image to draw over. Using the pen tool the artist drew and created the curves and lines that make up the character and coloured it in. Some artists will create character graphics this way, and others will draw directly digitally on a Wacom graphics tablet.
Here is a work in progress screen shot of the artists work. Once the artist had a basic coloured version of the character, the artist then added shadows to add depth and realism to the character.
This is the final image of the character turnaround. It helps to get a feel for how the character would look and move from different angles, and so turnarounds such as this can be very useful to aid animation.