From the linked article:
Want to bring the horror of films like Paranormal Activity to your own home? You have two options: Attempt to get your house actually haunted - though we don't really have much guidance for you on how to pull that on off - or play Night Terrors, an upcoming augmented reality horror game that uses your smartphone to turn your very own abode into a place you probably won't want to hang out after dark.
The trailer includes the developers explaining how and what they're trying to do, but if the trailer is any indication of how effective the game is...then HELL. NO. It's utterly brilliant, but I don't know that I could ever see my apartment the same way after that. Night Terrors indeed.
It might be fun at parties, though.