Darkstone Digital and DreadXP have announced that they will no longer release Paranormal Activity: Threshold because Paramount would not give them more time to make the horror game.
Brian Clarke, best known for being the creator of the viral horror game The Mortuary Assistant, broke the news on Darkstone Digital’s X account on Wednesday.
“It became clear that the game needed more time to ensure it was the best it could possibly be,” Clarke explained. “DreadXP stood by my need for more time and, together, we made a request to Paramount for a time extension. Sadly, Paramount did not agree to extend development. This left me with two choices: Rush through development and release a sub-par product I would not be proud of or request we go our separate ways. I chose the latter.”
I have a very important announcement everyone. Please have a read. Thank you all for your ongoing support of my work and love for indie games as a whole. 🖤🖤 pic.twitter.com/kmCS3t3BTq
— Brian Clarke ⚰️ (@DSDigitalDev) May 7, 2026
DreadXP first teased a new game based on Paranormal Activity in 2024, and it caught GameSpot’s attention again last October. Paranormal Activity: Threshold was even playable at PAX East and got a “wildly positive reception,” according to Clarke, which makes the cancellation sting even more. The project’s fate ultimately serves as a reminder of the restrictions and challenges that come with licensed IP game development.
Thankfully, the tumultuous end of Paranormal Activity: Threshold’s development has not completely dissuaded Clarke, who teased an eventual return to the horror genre after a “small vacation” and appears to still have a good relationship with publisher DreadXP.
While Paranormal Activity: Threshold is no longer in development, a new Paranormal Activity movie is slated to come to theaters in May 2027.