Punchdrunk has announced a partnership with the gaming company behind Pokémon Go to create a "groundbreaking new form of entertainment".
Niantic uses augmented reality – technology that adds a digital dimension to real world surroundings – to create gaming experiences.
The two companies are working together to "collide their worlds of real-world augmented reality and live theatrical performance on a scale not seen before" and explore new possibilities for interactive entertainment.
Felix Barrett, artistic director of Punchdrunk, said: “It is hugely exciting to be joining forces with the preeminent augmented reality company in the world.
"At Punchdrunk we create richly cinematic 3D worlds where audiences can explore, touch and smell the environment; where the boundaries between reality and fantasy are indistinguishable.
"Those that have seen Sleep No More often liken the experience to how it might feel to walk into a video game. What happens if you take that sense of adventure into the real world? Tear down the walls and the world becomes your stage."
Barrett added: "I believe that Punchdrunk and Niantic can create something that has never been done before.
"They do it in augmented reality, we do it in real life. Collide the two and I think we will blow people’s minds; bend the rules of genre and redefine the norms of mobile gaming.” John Hanke, founder and chief executive of Niantic, said the two companies had been collaborating for many months to create entirely new experiences “that merge the physical and digital worlds in a way that hasn’t before been attempted”.
“We think the potential is global and massive,” he said.