(Sega AM1's universe)
After witnessing the supposed death of his fiancée Sophie, AMS agent Thomas Rogan continues through the creature-infested Curien Mansion with his partner G. The duo take various routes, ultimately fighting through a DBR research center.
Upon climbing a ladder to the rooftops, Rogan and G encounter Hangedman, the winged humanoid creature who kidnapped Sophie earlier. Hangedman drops two researchers to their deaths before battling the agents; after a fight, he too falls to his death.
- In the second bedroom, next to the bookshelf is a fish tank; swimming inside is a fish sporting a Bentley creature's head.
- Audio from the 1986 Space Shuttle Challenger disaster, in which seven United States crew members were killed in an explosion onboard the Space Shuttle Challenger, is sampled in the Sega Saturn and PC version of Chapter 2's theme. The audio in question is "Challenger, go at throttle up", which was spoken by Mission Control spacecraft communicator Richard O. Covey moments before the explosion. The House of the Dead's arcade version of the track instead samples Hangedman's snicker.