Creating Pixel Art

After watching video after video -- and reading a ton of tutorials to boot -- I still don't quite have my questions answered.

1. How did Deconstructeam create the art for their game Gods Will Be Watching?

My question isn't just about that one game, but any game involving pixel art -- especially the really, really beautiful ones. Is it just my own ignorance and stubbornness that makes me think it's impossible they took the time to draw each pixel, one by one, by hand? After all, the time it would take to do this would be extraordinary!

Is there some other, faster method of drawing pixel art for a game? For example, is it possible to draw out the character like you would any other, them degrade it down to simple, noticeable pixels?

2. What software, technique, and tools are they using to accomplish this?

I'm interested in drawing pixel art myself, but didn't quite know how to approach the subject. As mentioned before, is it a matter of patience, or a matter of knowing the various techniques for accomplishing such a goal?

I don't have a problem with clicking each and every pixel into Photoshop, I just don't see how a company who's game involves very detailed and awesome pixel art, could ever finish their game.

Thanks for all your responses ahead of time.

does this help?

http://www.pixeljoint.com/forum/forum_posts.asp?TID=11299

@billymagnum: That's probably one of the better ones, but it is a lot of swallow all at once.

Derek Yu made a very handy tutorial that focuses on taking a hand drawn image and making it pixel art. Of course the process he follows is very similar to your tutorial, I guess the only difference is that it is one image, instead of several examples.

http://makegames.tumblr.com/post/42648699708/pixel-art-tutorial

Aside from those tutorials, you'll find tons of deviant art and just random Google searching. They are so helpful, considering that's how I learned to do it. Practice makes perfect. But nobody's perfect!