The game was originally budgeted for $800,000, but it ultimately cost $4.5 million to develop and was filmed in a $1.5 million studio that Sierra built specifically for the game. It took more than two years to develop and four months to film. More than 200 people were involved in making Phantasmagoria, which was based on Williams' 550-page script, about four times the length of an average Hollywood screenplay. Williams had long planned to design a horror game, but she waited eight years for software technology to improve before doing so. It was noted for its violence and sexual content.

It was made at the peak of popularity for interactive movie games and features live-action actors and footage, both during cinematic scenes and within the three-dimensionally rendered environments of the game itself. It tells the story of Adrienne Delaney (Victoria Morsell), a writer who moves into a remote mansion and finds herself terrorized by supernatural forces. Phantasmagoria is a point-and-click adventure horror video game designed by Roberta Williams for MS-DOS and Microsoft Windows and released by Sierra On-Line on August 24, 1995.

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