FNaF World Classic (FNaF 4) part 1 - They're actual nightmares
When FNaF 4 came out in July 2015, the Nightmare animatronics were believed to be trumatic manifestations of the Withered animatronics that Crying Child's older brother saw after a fatal practical joke; in October 2016 that belief changed to experiments, using discs that emitted high frequency sound waves.
Classic (2D overworld): https://gamejolt.com/games/FNaFWC/464479
Update 1 (3D overworld): https://gamejolt.com/games/FNaFWArch/729274
FNaF World and respective content/characters (c) Scott Cawthon.
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