Moving light sources, possible?

[Kraggdog]

You could animate it. You'd just need to attach a light souce (Pointlight or Spotlight) to a bone in the animated object's skeleton.

It is also equally possible to have it as a move object as opposed to actually animating it, though it's motions wouldn't be as accurate as you could make it with animations.

And the lighting / shadows in the scene will be dynamic to reflect this movement? It's not entirely all baked in? I suppose in the same way the lantern works.

Thanks for the tip, will have to try this out