'Resident Evil 7' news and updates: New trailer features terrifying 'Lantern Lady'

Capcom's seventh installment to the "Resident Evil" franchise offers a new and more frightening demo trailer than the previous teaser "Beginning Hour." The latest gameplay footage shows terrifying lady with a lantern chasing the protagonist.

The long-running horror action series is finally going back to its horror roots with the new "Lantern Demo." The lantern-holding old lady offers players a chilling glimpse of what's to come once the full-fledged version of "Resident Evil" arrives on PlayStation 4, Xbox One, and PC on January 24, 2017.

The new trailer drops hints of what to expect from the game's immersive yet creepy environment with an insanely terrifying villain that comes out of nowhere. The demo footage is an exhilarating horror experience of hide and seek as players evade the screaming lantern lady's wrath. Playing the survival horror game with a virtual reality headset could send gamers into a disorienting nightmarish experience.

For now, "Resident Evil" fans are still trying to decipher the puzzling storyline as they patiently piece together whatever clues they could find. In a nutshell, "Resident Evil 7" involves a mysterious family secret set in a haunted mansion, Eurogamer reported.

Meanwhile, some game buffs point out that some video camera filter issues are causing the environment to get blurry and fuzzy in the "Lantern Lady" demo. Despite some video aesthetic concerns, Capcom promises that none of these issues will appear once the game is rolled out next year.

"While it may look a little fuzzy, don't worry – that's not representative of the entire game's final graphics. What you see here is a filter that simulates the battered tapes that you'll be 'watching' and playing through in the full game, similar to the tape you can find of the "Sewer Gators" film crew in Beginning Hour," the developer said per official blog statement.

In another related development, producer Masachika Kawata recently assured fans that Capcom is currently working on resolving the VR-related issues surrounding the "Resident Evil 7." In a recent interview with Metro, Kawata said that the creative team behind the horror survival game took note of the concerns that fans and critics raised have after doing through its VR demo last June's Electronic Entertainment Expo (E3). The game's fast-paced gameplay reportedly cause VR users to experience dizziness during and after the game.