Why did Paranormal Activity Threshold get cancelled?

Paramount refused more development time, studio ends the project

Paranormal Activity: Threshold has been cancelled after Paramount declined to give the Mortuary Assistant creator’s team more time to finish the game.

The situation centers on how production timelines were managed: the project was developed by Darkstone Digital and DreadXP, with the solo developer behind it being Brian Clarke. In the coverage provided, the decisive factor was Paramount’s position on extending the schedule—essentially, the publisher would not grant additional time so the team could make the horror title “the best it could possibly be.”

The cancellation matters because it shows how tighter deadlines and publisher constraints can directly end a project even when the concept is tied to a well-known franchise. In this case, the game didn’t just shift marketing plans or delay to another year—it was shut down.

Key confirmed details from the included story:

• The game was explicitly cancelled.
• The reason given is that Paramount wouldn’t give the devs more time.
• The developers involved were Darkstone Digital and DreadXP.
• Brian Clarke is named as the solo developer releasing the statement.

No alternative release date or replacement title was announced in the supplied material, and no information was given about what elements (levels, story beats, or systems) might resurface elsewhere.

For fans of Paranormal Activity horror games, the immediate implication is that there won’t be a new Threshold release to look forward to—at least under the current plan—because the publisher’s refusal to extend development time left the project with no path forward.