The CEO of Clayton Software, Faye Clayton, lays off her development team after their latest game project, called "Evilution", receives numerous disastrous test previews, and begins her search for a new team. During this search, she selected a team of renowned game designers, Bug, Hardcore, Sol, led by Peter Drummond as replacements. At the same time, they are informed that a bonus of a million dollars would be awarded to those who make the game the most scariest, through innovation means. Despite the rivalry among them, they work together to make a game scary enough to scare the kids in four weeks. Just as Sol adds his powerful AI chip into the hard drive, the lightning strike causes a power surge which brings "Evilution" to life. The programmers are soon confined in the building, becoming targets of their killer game they've created and the virtual nightmare begins.