Which is better, shooting a bullet from camera or from the gun itself?

Thanks, makes sense. They come from the GunCamera, which is just a child camera of the main camera (both positioned the same.) So the bullet is pretty much coming straight from eye level to the center of the screen, but I highly doubt the player would ever figure this out because the bullets can't be seen. One thing that does worry me though, is if the player was close to a wall, like right near it, and fired a bullet, the bullet hole would go right to the center, not where the gun is pointing. Anyways, thanks for the answer, I'll mark as accepted.

CoD and other modern FPS games mask this by, obviously, showing a muzzle flash on the gun when being fired, which of course gives a strong believable expectation that the bullet comes from the gun, but also for drawing the tracer bullets, these are also seen as coming from the gun's position, not from the camera's position. Combined, there really isn't any reason for the player to think the bullets don't actually come from the gun itself.

The times when this illusion is broken and the player can see what's going on, like the example I provided or the one you mentioned with the wall, they don't really cause much of a problem for a player's enjoyment of the game. At least, I've never heard of people creating a big fuss about it. It's just a "heh, that's funny, so that's how they do it" moment for most gamers, probably.

And in fact, with your wall example, that's not as big a problem as you think. The bullet hole decals are drawn where the crosshair is pointing to. That's where the player expects the bullets to be. Especially since even though the player is right up to a wall, the 1st person model of the gun still points forward, where in real life this would have to be lowered in order to press closer to the wall. This gives the player an illusion of distance between them and the wall.