There is no "real" to dreams; reality shifts, shapes start as one thing and become something else, the familiar becomes strange and unsettling. Limbo, the upcoming Xbox Live Arcade release from Playdead Games, brings that world to gaming almost too well. We've played the game before, but after having a chance to dig into a preview build in our own home, with headphones, it's clear that this is a game that rewards a long, deep swim through the gameplay.

The graphics look like hand-drawn charcoal, and the sounds are minimal. There are no voices, and no clear explanation of what's going on. What's clear is that dying is easy, and it will happen often. There is no real penalty for losing your life—checkpoints are frequent—and many of the puzzles seem designed to kill you at least once before you understand the mechanic needed to move forward. You play the part of a small boy trying to rescue his sister, and you can expect him to be impaled, dropped, drowned, poisoned, and crushed.

Our hero is not super, and is almost too vulnerable to his environment

You'll be constantly scanning the screen for hints on how to move forward. Are those branches of a tree, or the legs of a spider? How do you move a crate to a far-off area you have to flood to move forward... without drowning? Why are these shadowy forms trying to kill you?

At one point a parasite burrowed into my skull, changing the way the game played. There are horrific things happening in the world of Limbo, and you'll be fighting revulsion and the creeping sense of terror just as much as the puzzles.

Playdead is a small, independent studio based in Denmark, and the team has proven what a dedicated group can do in terms of attention to detail. The physics included here feel different from other games, but they also feel incredibly right. Everything looks and feels like it should. The small touches show the level of love given to the game: in one section you ride a boat across a body of water, and walking to the front of the boat causes the little boy to rest his hands on the craft and peer forward. This does nothing in terms of gameplay, but it sets the stage wonderfully. It looked like a lost child trapped in a place he doesn't understand... which is of course the entire point.

A sense of dread flavors the entire game

The later puzzles will require some serious time and thought, which is not a bad thing; this game rewards a dark room and a good pair of headphones. If you have a weak stomach or spook easily, this may not be your thing. For everyone else, this is proof that the worst nightmares come at you slowly.

At GDC this year I was able to sit close to the Playdead team as they won two Independent Games Festival awards; they had just demoed the game for me that morning. They were beaming at their good fortune, and at the early positive buzz their game was enjoying at the show. One of them patted my shoulder as he walked by, as if to say "See, we told you."

While we moan about paying to play games online or about $15 map packs and one-time use codes, it's important to point out what modern gaming does well these days: interesting, smaller games like Limbo can very easily find an audience and acceptance, even on the mainstream consoles. It's a beautiful time to be a gamer.

At E3 I bumped into the team again, showing the game off at Microsoft's booth. "This is not the environment for Limbo," I was told, as the developer shrugged at the noise and hustle of the show. "But we're able to introduce people to the game." I'm very glad that I get to do the same thing.

There is no set date on the full version of the game yet, but after being given the chance to enjoy a longer look at the title, it's clear that this will be a very special release.