Outlast, a true survival-horror experience, is the studio's first project.
A group of video game veterans from some of the biggest franchises – including Assassin's Creed, Prince of Persia and Splinter Cell – have formed independent studio Red Barrels in Montreal.
The new studio aims to create unforgettable single-player games, the first of which being survival horror title Outlast.
The game's set in the abandoned Mount Massive Asylum in the remote mountains of Colorado, but re-opened by the "research and charity" branch of the transnational Murkoff Corporation.
You play as independent journalist Miles Upshur who breaks into the facility to discover all manner of horrors.
"There are already a lot of great games out there about terrifying monsters that eat brains; we want Outlast's to be scary because you'll know the enemies you face still have them," said Philippe Morin, co-founder of Red Barrels.
Outlast will be coming to PC digital download in summer 2013.