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I like transformations with clearly defined actions, without all sorts of floaty bits needing to be tucked in somewhere. Transformations should be challenging, but never frustrating. I really enjoy the transformations of MP-12 Sideswipe and MP-13 Soundwave, because I did not need the instructions at all: although there's a lot to do, their transformations are both very intuitive, and they both do not have any parts which seem to be deliberately complex. It's that almost deliberate and needless complexity which turns me off transformations in some of the Binaltechs / Alternators (especially the Ford Mustang mold).
I collect primarily G1 TF's, and their transformations are of course pretty easy most of the time: still, I can sometimes be pleasantly surprised by new G1 Transformers in my collection which have transformation sequences more interesting, unexpected or complex than I could have guessed at first glance.

I love transformations that are not so easy or hard to do, an example would be the recent Prime figures (not all of them though, for example RID Voyager Ultra Magnus), my favourite of that example would be Voyager Breakdown, both Voyager Bulkheads, etc, etc.

I do not like over simplify transformations, a recent one is FOC Grimlock.. didn't "play" with it that much

I don't enjoy overly complex transformations or parts/panels that don't line up without extensive fiddling. If they are, I put them in bot mode and pose on the shelf. I don't take them down and mess with them anymore. Examples include MP Megatron, WFC Prime, Alternators/Binaltech.

Figures I take off the shelf to play with often include FOC Soundwave and Blaster, Classics Prime, Generations Warpath, Universe Inferno, and Classics seekers.

I don't mind complex transformation but don't really like the transformation process that has parts get in the way. Generation Straxus (oops, Dakrmount I mean), WFC Prime, FE Arcee (kind of) all kind of fall in to this category although they are all awesome figures. Also don't like the panel lining thing such as ROTF leader Jetfire.

Most of the Classics/Universe 2.0/RTS I really enjoy transforming them.

My favorite toy to transform would be ROTF Soundwave, because I have about four or five different modes he can pull off. He also has decent poseability, and it's Soundwave.

My least favorite is ROTF Optimus Prime. That is a B-witch to convert.

It's almost easier to say what I don't like. Shellformers where the shell parts interfere with articulation or aesthetics. Partsformers where it wasn't necessary (ie splitting into multiple vehicles). Essential components of one mode which have no place to fit in another mode, or detach to become accessories. Designs which could easily have been so much better, but improvements were removed or never implemented in order to fit into a price point. Visible robot kibble in any non-robot mode (head and hands especially, but also feet). Designs where the altmode is very obviously just the robot doing yoga.

Robot modes with huge amounts of altmode kibble or oversized backpacks. Buttflaps, now that Fansproject Function X-1 has shown how to neatly turn them into chestplates without losing waist articulation. Beast mode kibble which doesn't neatly tuck away or display aesthetically. Quadruped transformations where the robot arms become the forelegs and robot legs become the hind legs on the same sides as the robot limbs, using the same articulation joints in both modes.

Gaping holes in any mode, including hollow components which are very obviously so. Transformations where the toy starts compact, spreads messily all over a table, and then collapses back down in a slightly different manner. Oversized faux parts. Arms which are just a weapon, tool, or leftover part of the altmode, and couldn't really be used as normal arms. Transformations requiring panel/parts massage.

What I don't mind: origamiforming, to a degree, as long as all the panels lock into place. Thematic faux parts, where a design of one part may look similar (but not slavishly identical) to another part. Uni-legs. Transformation steps or joints which exist purely to make the robot mode look better. Innovative quadruped transformations (BW Silverbolt comes to mind).

What I like: elegance - the minimum number of parts, joints, and moves to switch the components into position. Aesthetic robot modes - they don't have to be humanoid or even have strictly human proportions, but I do like them to be relatively clean, instead of looking like an animated junkpile. Built-in weapons - it's one less part to lose, and it just makes more sense for war machines. Pop-off/on ball joints. C-clips. Multiple modes done well. Clips, stops, ratchets, and tabs which help you to tell when a part should stop moving in a transformation even if it could physically move further.

What I would like to see: transforming heads and hands. Not just "cute little ear-wings pop out" or "a panel swings into place to hide the fingers", but actual transformations of heads and hands into parts of the altmode or to tuck away. The Leader, Masterpiece, Supreme, and Titan-classes should be able to accommodate this. And Headmasters don't count - they just had a panel swing into place to cover the face as it turned into backpack kibble. Not even Animated Shockwave did much better. Where's the Devastator head which splits up to store partly in Hook's torso and partly under the crane? The Superion head which forms Silverbolt's nosecone? The Metroplex head which slides into thirds and stores in his chest? The Trypticon dinosaur head which becomes... well, _anything_? Yeesh, I can think of a Punch/Counterpunch transforming head which only needs two parts, still has full balljoint capability, looks different in either mode (including different head colors and helmet shapes), and doesn't have the other face sticking out of its back.

Sometimes a transformation makes me say "wow, that's clever" and that's the best type. There's always something that's been done on other figures, like MP Sideswipe's hands swinging inside the hinged arm panel, but he has plenty of other new and interesting ideas.

I don't like shellformers.
I don't like parts that don't lock somewhere. Alternity Megatron has lots of options for his shoulder parts but it takes a long time to line them up symmetrically.
I don't like having to squash parts together (DotM deluxe dreadlock SUV chappie requires the car mode being CRUSHED together).

Best transformations:
Leader Starscream because everything is just so intuitive and perfect.
MP Hot Rod because it's insanely complex.
Classics voyager OP.
MP Soundwave.
MP Sideswipe.
Classics Inferno.

*Edit
I don't know about you but the first few steps in TFP RID Deluxe Ratchet were a NIGHTMARE to me.
Those who know him: know these hook-like pieces on the inside of his arm-pieces that hook behind corners on his cabin-pieces, I nearly broke these off when I tried to transform him first few times.

For those who plan to obtain above-mentioned figure: I recommend that you push the cabin-pieces upwards before pulling those pieces apart.

Other than that, the transformation isn't that bad, but my best transformer is PRID Vehicon

the Prime line has had some damn good ones. RID Vehicon of course, but I'd also like to mention Cyberverse Cliffjumper. Great transformation for such a tiny figure.