However, it was announced in August 2021 that the game has been delayed to 2022 due to the COVID-19 pandemic. On June 13, 2020, a teaser trailer was released, announcing a release for 2021. On December 4, 2019, Red Barrels released a teaser image of the game. Red Barrels co-founder David Chateauneuf said 'the proof-of-concept is now complete and the game's team is now in development mode'. It is about test subjects for the Murkoff Corporation in a mysterious Cold War experiment that is set in the same universe of the previous games. The Outlast Trials was teased in October 2019 and is not a direct sequel to Outlast 2.

The development team of the game had around 40 people. Red Barrels also described the game as a 'TV series'. During this announcement, Red Barrels said that because they could not easily add downloadable content for Outlast 2 due to its structure, they have a smaller separate project related to Outlast that will release before Outlast 3.

Outlast 3 was announced in December 2017, though no time frame or target platforms were confirmed. The player cannot directly fight against enemies, and stealth is the preferred way to progress in the game. Players can pick up various useful objects, such as anti-psychotic drugs, lockpicks and healing items, but they can only carry three items at once. It needs to be regularly recharged with a scarce battery resource. The player has access to a pair of night-vision goggles, allowing them to navigate dim-lit areas. Each class has a unique ability, allowing players to perform actions such as seeing through walls, healing other players, placing mines, and throwing a device to temporarily stun enemies. The game features four distinct character classes and skill trees. The player must complete a set of tasks while evading monstrous enemies. While the game supports four-player cooperative multiplayer, players can complete the game solo. The Outlast Trials is a survival horror game played from a first-person perspective. The game was released on via early access for Microsoft Windows. It is the third installment in the Outlast series, serving as a prequel to the first two games and features test subjects in a mysterious Cold War experiment. The Outlast Trials is a first-person psychological horror survival video game developed and published by Red Barrels.

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