Blumhouse to adapt viral horror game Phasmophobia into film with Atomic Monster and Kinetic Games
Blumhouse Productions has officially announced the development of a feature film based on the viral horror video game Phasmophobia, marking the studio’s latest foray into the world of video game adaptations. The film will be co-produced by Blumhouse and Atomic Monster, the production company helmed by acclaimed horror filmmaker James Wan, in collaboration with the game’s original developer, Kinetic Games Limited.
'Phasmophobia.'
Kinetic Games
Unveiled during the inaugural “Business of Fear” event in Hollywood, the project underscores Blumhouse’s strategic focus on adapting popular horror gaming IPs with built-in fanbases. While no distributor or theatrical release date has been confirmed, the announcement follows the massive success of Five Nights at Freddy’s, which grossed $291 million globally despite a simultaneous streaming release on Peacock.
Originally released in early access in 2020, Phasmophobia quickly became a cultural and streaming sensation amid the COVID-19 pandemic. Its cooperative, first-person gameplay—where players assume the roles of ghost hunters using real-world paranormal investigation tools—struck a chord with online communities. Twitch streamers and YouTubers played a pivotal role in its rapid ascent, helping the indie-developed title top Steam’s best-seller charts for several weeks.
Since its debut, Phasmophobia has been ported to multiple consoles and surpassed 23 million global units sold. The game also earned critical acclaim, including a win for Best Debut Game at the 2020 Game Awards.
With Phasmophobia, Blumhouse continues to build on its successful model of translating streamer-popularized horror video games into box office hits. The studio’s next release, Five Nights at Freddy’s 2, is slated to hit theaters on December 5. Blumhouse also operates a dedicated gaming division, with upcoming titles like Eyes of Hellfire and Sleep Awake currently in development.
This strategic expansion into interactive horror properties reflects the genre's growing influence across both the entertainment and gaming industries, as studios seek to engage a new generation of fans whose first encounters with horror often come through a controller rather than a movie screen.
