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Pony Island, one of Daniel Mullins’ earliest horror games, can be added to your Steam library at no cost until 12 October 2026. The giveaway arrives ahead of the planned sequel, Pony Island 2: Panda Circus.

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Originally released in 2016, Pony Island begins as a seemingly simple 2D endless runner featuring unicorns. It soon becomes something far stranger: a genre-hopping meta-horror adventure about escaping a cursed arcade cabinet.

The game was well received for its experimental structure and postmodern storytelling. Mullins later created The Hex in 2018, another genre-focused title built around six characters, each connected to a different style of game.

His best-known work followed in 2021. Inscryption combines deckbuilding with roguelike systems, escape-room puzzles and unsettling horror, earning praise for its mechanics, visual design and atmosphere.

For more stories about games, hardware and the culture surrounding arcade play, visit the RETROCADE Arcade Blog and browse our arcade videos.

What to expect from Pony Island 2: Panda Circus

Pony Island 2: Panda Circus was announced at The Game Awards in 2023. Like the first game, it appears to centre on a lost soul attempting to break free from a video-game world.

“Pony Island 2: Panda Circus is a phantasmagorical voyage through time, myth, divinity, and video games.”

The game’s Steam description says players take the role of a young nomad whose early death leads to The Earth Prison. To escape, they must confront the deities of the underworld while trying to preserve both their soul and sanity. The description also makes clear that this is not a game about ponies.

The latest trailer suggests that the trapped soul is Temujin, better known as Genghis Khan. Mullins has also said the sequel will move between several genres, with footage showing real-time strategy, first-person exploration, command prompts and 2D action sequences.

A distorted video appears in Pony Island 2: Pandas Circus.

Pony Island 2: Panda Circus is scheduled to launch on 27 April 2027. Until then, players can apply to join the ongoing Steam playtest.

If you enjoy the physical side of gaming, RETROCADE’s arcade machine buying guide can help you choose a cabinet, while the arcade machine collection covers larger home setups.

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