Fear Effect is a Playstation action-adventure game where three mercenaries - Hana, Glas, and Deke - embark on a mission to find the young Wee Ming Lam in futuristic Hong-Kong. Their search leads them into dangerous areas, including zombie-infested villages, dubious restaurants, and the Chinese hell.
The gameplay of Fear Effect combines elements of survival horror and action-adventure games, with a focus on precise timing during arcade-like sequences. Players control Hana, Glas, or Deke through various chapters, using abilities such as crouching, sneaking, rolling, and shooting while running. Characters can also use two weapons at once to combat multiple enemies, and puzzle-solving plays a significant role in the game.
Instead of traditional health bars, characters have a "fear meter" that can be restored by reducing stress through actions like solving puzzles or killing enemies stealthily. The fear meter's functional difference from a regular health bar is its susceptibility to damage or stressful situations.
The game features 3D character models with an unshaded cel-shading technique and anime art style, while pre-rendered backgrounds often include streaming or looping full-motion video. The story unfolds through numerous pre-rendered movies, showcasing the game's cinematic approach.