The Sinking City 2 is a survival-horror game, set in Lovecraftian 1920s United States. It takes place in the infamous city Arkham, now plagued by a supernatural flood that has brought decay and Eldritch monsters to its streets. Fight nightmarish abominations, explore a rotting city as the rising waters change the landscape, and discover what dark mysteries brought you to this forsaken place. The Sinking City 2 will feature a new, stand-alone story separate from the one told in the original game.

With The Sinking City 2, Frogwares hopes to pivot the studio to a “horror-first” focus with gameplay primarily built around combat, exploration, and its Lovecraftian setting + story. The team has also finally been able to move over to Unreal Engine 5 to utilize the technological leaps and bounds the engine is offering developers.

On top of strong storytelling, The Sinking City 2 will have Frogwares’ other hallmark feature - the ability to be a cunning detective. However, this time around the feature will be entirely optional. Players can decide when and where to put on their sleuthing caps to unveil new secrets, lore,  ways to progress etc.

Frogwares has released a new 12-minute gameplay trailer for The Sinking City 2.

The new trailer features never-before-seen gameplay captured in the Arkham Fish Market, once a bustling waterfront hub alive with merchants, dockworkers, fishermen, and travelers. Today, it stands as a decaying monument to the evacuated city. Rusting ships sit abandoned in the harbor, empty storefronts line the flooded halls, and the workshops that once supported the local fleets have long since fallen silent. Eldritch monstrosities now stalk the market's walkways, while only the most unhinged survivors remain, as the flood seeps further and further into their minds.

The footage also offers a closer look at protagonist Calvin Rafferty in combat, showcasing more advanced weapons and the tougher encounters awaiting players as they face larger, deadlier, and increasingly unpredictable horrors.

New Game+ Available at Launch, HDR Patch Planned as Free Post-Launch Support 

Frogwares has also confirmed that The Sinking City 2 will include a fully featured New Game+ mode at launch, giving players even more reasons to return to Arkham after completing the main story.

New Game+ lets players carry over all their perk points, perks and items to the start of the game to better take on a range of challenges to unlock certain achievements as well as unlock various cosmetic and gameplay rewards.

Alongside the announcement, the team confirmed that its planned HDR patch is now part of the game's free post-launch support. As development enters its final stretch ahead of the August 18 release, the studio has prioritized completing the core game and launch features, with the HDR update following shortly afterward. With most of the groundwork for the patch already complete, Frogwares is optimistic it will be available very soon after launch.

Key Features

• Fight to Survive: Use an arsenal of 1920s-inspired firearms and melee weapons to fight against Eldritch-inspired admonitions.
• Explore The Decaying City of Arkham: A semi-open world of decaying mansions, flooded markets and abandoned hospitals. As you progress the flood waters will rise, changing the layout of locations when you return.
• Find and Use What You Can: Scrounge for limited resources and balance a finite inventory as you decide what to bring and what to leave behind
• Choose to Investigate Further: Solve optional puzzles that let you investigate your surroundings deeper to uncover secrets, alternate options, and more lore
• A Twisted Lovecraftian Tale: Experience a morally grey and captivating story set around the Lovecraft mythos of cults, mutant creatures and incomprehensible gods

The Sinking City 2 is coming to PS5, Xbox Series X|S and PC (Steam)on August 18, 2026.