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His forehead bears the imprint of a strange symbol, which seems to be the source of his amnesia. He travels to a city, where he encounters strange events and a man named Lord Gordon who rules the town with an iron fist and plays cruel games with the town's inhabitants.

• Title — Lunacy • Developer — System Sacom • Artist — Noriko Takeda, Koh Okamura • Director — Hiroyuki Naruhama • Writer — Kenji Takemoto (story) Kenichi Tanigawa, Nobuhiro Miura (English version) • Designer — Kaori Tsuchiya (planning) • Genre — Adventure Interactive movie • Modes — Single-player • Platforms — Sega Saturn

• Illustration — Fred, the protagonist of Lunacy A traveler called Fred finds himself imprisoned in Misty Town jail. He came to the village in search of answers to his past, a past of which he has no recollection. On his head, he bears a crescent shaped tattoo. In his cell, Fred meets the strange and seemingly all-knowing Anthony, who tells him of the legends of the City of Moons. It is said that the road to the City lies through the Misty Town. Anthony offers him the key to his cell, but after an attempted escape, Fred quickly finds himself back in the hands of Lord Gordon, the ruthless town ruler. Lord Gordon condemns the traveler to death, but offers him a chance to save his life. If he can find the entrance to the City of Moons he will be spared. Fred begins his search for the fabled city, shadowed by Lord Gordon's sadistic henchman Jade. Throughout the village he meets the various people that populate the Misty Town, such as the irritable Dr. Morse, the soft-spoken Rose, and the melancholic Gray. A dried up well may or may not hold the key to his mystery and as his quest unfolds, Fred's path will lead him across various items that may serve one magical function or another. Matches, oil, treesap and red paint prove to be an integral part of the puzzle.

• Illustration — A room in the City of Moons Lunacy is set in two major locations: Misty Town and the City of Moons. Correspondingly, the game is divided into two discs. Once the player finishes disc 1, disc 2 can be accessed and continues from there. Although the game maintains the illusion of free three-dimensional movement, in reality each action loads a pre-scripted FMV sequence. Gameplay is essentially restricted to moving left and right, forward and backward or moving in to examine certain objects. The story is followed through a first-person perspective. Some events may not trigger until Fred has spoken to one of the townspeople. Items can be collected and every important encounter is stored in a memory log. The player can save progress anywhere, anytime. While the storyline of disc 1 follows a fairly linear course, disc 2 allows for multiple outcomes to the game, depending on what choices the player makes at a given moment or which items are used.

System Sacom previously developed the Sega CD game Mansion of Hidden Souls (1993) and later Saturn game, The Mansion of Hidden Souls (1994) which was also a first person adventure title. Though Atlus USA published Lunacy in North America, the game was translated and localized by Sega. Sega offered the game's North American publication rights to third party companies so that they could devote more of their marketing efforts to more high-profile games.