The upcoming horror video game "Paranormal Activity: Threshold" has been cancelled [1, 2, 3].

The project was led by Brian Clarke, the solo developer known for The Mortuary Assistant, and published by DarkStone Digital [1, 2]. The cancellation removes a highly anticipated entry in the paranormal horror genre and highlights the volatility of licensed intellectual property in game development.

Development ended on May 9, 2026 [2, 1]. The decision followed a request for more time to complete the project, which was denied by the license holder [3, 4].

Paramount refused to grant a development extension to the team [3, 4]. Because the extension was not approved, DarkStone Digital ended the production of the game [3, 4].

Clarke had previously gained recognition for his work on The Mortuary Assistant, a title that established his reputation for atmospheric horror [1]. The collaboration with DarkStone Digital was intended to bring the Paranormal Activity cinematic universe into an interactive format [1, 2].

While specific details regarding the state of the game's completion were not disclosed, the refusal of the extension served as the final trigger for the cancellation [3, 4].

The upcoming horror video game "Paranormal Activity: Threshold" has been cancelled

This cancellation underscores the risks associated with licensed games, where the developer's timeline is strictly beholden to the corporate owners of the IP. When a studio like Paramount denies a deadline extension, it can effectively kill a project regardless of the developer's progress or creative vision.