Paranormal Activity VR game: Watch us play this year's scariest demo

Just imagine being dropped straight in the middle of your favourite horror movie - only then can you start to comprehend the terrifying potential virtual reality has when it comes to scaring the pants off gamers.

It's the exact thinking behind Paranormal Activity: The Lost Soul, a brand new VR game in development which takes its basis from the hit found-footage franchise; though it won't directly adapt any of the six existing films, choosing instead to take on an entirely new storyline which acts as a kind of next chapter in the series.

We had the rare opportunity to test out a small portion of the game on the HTC Vive, which itself boasts the unique use of a tracking system. Though you can still navigate the traditional way by pushing up or down on the D-pad, a lot of the game is actually played by physically moving around in a designated space. Unsurprisingly, that adds a whole other level of unprecedented immersion; one that's yet to be offered by other VR headsets as of now.

The section we played dropped us straight into an ordinary suburban home in the depths of night; leaving us to initially encounter an eerie stillness as we wandered in and out of rooms, searching for a source of light to aid in our explorations. Having finally located a flashlight and its batteries - then the nightmare truly began and the bumps started in the night, all culminating in one pants-wetting jump scare.

We won't spoil what happens next, but safe to say our reactions to the game betray exactly how terrifying an experience this is. It's complete and utter environment immersion at a level beyond anything you're used to with the standard genre of horror games: whispers sound precisely like someone is standing right behind you, as you inch through darkened rooms at a glacier pace in the hope you won't disturb whatever's hiding within.

Paranormal Activity: The Lost Soul will be released in the near future on HTC Vive, Oculus Rift, and PlayStation VR.