Phasmophobia has launched its next major update on the way to its full 1.0 release, giving players proper avatar customisation for the first time and reworking how characters look, move and die during investigations.

The Player Character Update is aimed at making Kinetic Games' co-op ghost-hunting horror game feel less like players are floating through haunted spaces. In an official post, art director Corey Dixon said the team has been thinking about a player character rework for nearly five years, with the overhaul now arriving as Phasmophobia approaches its sixth birthday in Early Access.

Characters now have bodies, gear and custom looks

The headline change is simple, but it cuts straight into how Phasmophobia feels in first person. Players can now look down and see their legs, hold equipment more naturally and move through maps with a stronger sense of physical presence.

Equipment also appears on a character when it is not currently being held. That should make group communication cleaner, since teammates can see who is carrying key investigation tools without stopping to ask. Flashlights have also been adjusted now that characters have a left hand, replacing the older fixed-position look.

Customisation is the other major addition. Kinetic Games said lobbies previously leaned on repeated character models, while the new system opens up more personal identity through hair colour and outfit options. The studio plans to expand those choices over time.

The update also removes some of the awkward animation quirks that became familiar to longtime players, including the strange "bendy backs" movement that could undercut scares. Dixon said the goal is not to take away the comedy that naturally happens between friends, but to make the horror on screen feel more believable when tension should be building.

Death animations have been rebuilt before 1.0

Death animations have been completely reworked as part of the same character pass. Kinetic Games wants dying in Phasmophobia to feel like a bigger moment, and Dixon said the team will continue building on that work as new ghosts are added later.

The timing matters because the update is part of the game's final stretch toward 1.0. The Xbox Store page still lists Phasmophobia as a Game Preview title, describing it as a four-player online co-op psychological horror game about gathering evidence of paranormal activity.

Phasmophobia's old character system had become part of the game's odd charm, but this update is a clear step toward a more polished full release. Players still get the social chaos of arguing over evidence in the dark, only now with avatars that look more like people trapped in a haunted house instead of camera rigs gliding through one.