Horror game sequel, Outlast 2, has been confirmed by developer Red Barrels Red Barrels (YouTube)

Outlast 2 has been confirmed to be in development by studio Red Barrels, the sequel to their 2013 indie hit Outlast.

In an interview with Bloody Disgusting, the studio's co-founder Philippe Morin, said that after the huge success of the first Outlast game, they realised that the story wasn't quite over yet.

"It's important for us to be passionate about whatever we're working on, because we believe it's the only way to achieve quality.

"After shipping the Xbox One version of Outlast, we took some time to analyse our situation and we quickly realized we had at least another horror game in us.

"So, yes, we are working on Outlast 2."

Outlast 2 will be a survival horror and take place in the same universe as the original game, although it will focus on different characters and be in a different setting.

Morin said that they definitely want to improve on the first game, but the company's strategy behind the development will be the same one they used previously by making "a game we're scared to play ourselves".

Morin refused to reveal too much in terms of story as he believes horror is about discovery, and the studio's primary goal is to give players an 'emotional ride' and "every design decision will be based on how it affects the experience and if it serves it."

As Outlast 2 is currently in early development, no release date or platform details have been given.