The Woods started as a story-driven psychological horror concept built around the idea of a forest that is more than just a location. The forest is treated as a living entity that can influence the player, manipulate their perception, and use their memories and regrets against them.

The game begins with the protagonist arriving at a quiet village to investigate reports connected to the woods. Players can explore the village, interact with its residents, investigate different locations, and use dialogue choices to uncover information. Some villagers are unwilling to speak, while others can reveal more depending on the questions asked or choices made.

As the investigation progresses, the game gradually moves away from a grounded investigation and into psychological horror. Strange voices, hallucinations, unexplained events, and changes within the forest begin to make it difficult for the player to understand what is actually happening. The forest can even imitate familiar voices and alter its surroundings to mislead the player.

A major part of the design is the rules of the woods. Players are given warnings such as never entering the fog, not answering knocks while inside a shelter, and not responding when the woods call them. Breaking these rules is intended to have consequences, potentially affecting the player's survival or the direction of the story.

The project also explores interactive systems such as object examination, limited inventory, lantern fuel, radio and cassette interactions, environmental dialogue triggers, puzzles, stealth, and a balance mechanic used during moments of hypnosis or mental control.

The overall goal was to make the player feel that something is wrong without always showing them exactly what it is, allowing the mystery, environment, and uncertainty to drive the horror rather than relying entirely on direct encounters.