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Observer is a psychological horror video game played from a first-person perspective.

Observer is set in 2084 Kraków, Poland after the nanophage, a "digital plague" that cost the lives of thousands, resulting in war and rampant drug use. After Chiron, a megacorporation, took control of Poland and manifested the Fifth Polish Republic, a police unit known as Observers was put in control of the denizens with license to hack their minds. Drug and hologram addicts were made Class C and cast off to live in tenement buildings

The player controls Daniel Lazarski, a Krakówian detective of the Observers police unit. He can hack people's brain implants with a device known as the Dream Eater, for interrogation purposes.

Equipped with augmented vision split into Electromagnetic Vision—which scans for electronic devices—and Bio Vision—which scans for biological evidence—he is able to analyse and highlight certain objects in his environment. Objects can be interacted with and examined, while dialogue trees are used for speaking with non-player characters.