I actually enjoyed The Sinking City and would love to see a game like this but with more polish and higher budget. It was an ambitious game, too ambitious for the kind of budget that they had to work with, but there were a lot of things that worked for me about it. Most importantly it had a great atmosphere, some decent voice acting, and some of the quests were really interesting. I'd love to see an open world RPG like this where you'd play as a private dick, solving various cases that have a supernatural, Lovecraftian hook to them.
So yeah, if they could improve the combat, polish up the visuals, AI, character animation, and actually craft the open world map by hand instead of using an AI, I would love to play another Lovercraftian detective story framed as an open world RPG. Maybe even a direct sequel to The Sinking City, this time involving a bigger story set in a different location (then it would have to be called something else, I guess) but also featuring actual Old Ones on a proper epic scale.
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I also had this idea for a game based on At the Mountains of Madness for the longest time, which would basically be this first person survival horror game (but not a walking simulator) heavily inspired by John Carpenter movies - primarily The Thing but also his other Lovecraftian works such as In The Mouth of Madness - but based directly on Lovecraft's short story. The story would revolve around a new main character and his expedition that was sent after the first one from the story in order to find out what happened to them, and along the way you'd be finding clues and piecing the story together, while your team would be picked off one by one by the Elder Things (at first you wouldn't know what happened to them and only gradually discovering the threat), and later reappearing as possessed thralls out to kill you, kinda like the possessed people in Carpenter's Prince of Darkness. You'd have to fight both the Elder Things and possessed people, but also other creatures like the albino penguins or Shoggoth, and you'd ultimately end up delving into the ancient city and discovering its secrets.