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Scary. I retried the game multiple times and even though I expected it coming, it gave me the goosebumps. Does krampus detect noise? He catches me every single time before I can even do anything.

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Yes, he does. There's quite a bit of strategy to sneaking around--crouching and hiding in stuff in order to get around him. 

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Try turning on a sink! Then he will ignore your footsteps and go to turn it off