Eurogamer that it plans to self-publish the game in March 2009. Hydrophobia takes place on the Queen of the World, a massive city-sized ship with a teensy problem, it's sinking. The protagonist, Kate Wilson, as it turns out, is deathly afraid of water. It kind of makes you wonder why she applied for a job on a giant boat, but we digress. The game focuses on water based puzzles and incorporates an impressive liquid physics engine to facilitate them.
Blade Interactive already has a sequel planned, the hope of which floats on the success of Hydrophobia.