Alan Wake is a third-person shooter, described by its developers as a combination of "the mind of a psychological thriller", and "the body of a cinematic action game". In interviews, the game's creators hold that the game does not belong squarely in the survival horror video game genre. The game is primarily set in the fictional idyllic small town of Bright Falls, Washington. The main gameplay happens in various areas of Bright Falls – such as the forest, a national park, or a farm – during the nighttime; these are punctuated by calmer, non-combative sequences set during the day. The player controls the eponymous protagonist, Alan Wake.

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