The description in the story is actually pretty accurate it’s in a first-person perspective, with flat sprites in a 3D(ish) environment, and glitchy as hell. The game was obviously never finished, probably from lack of funding or the whole company going under.
As far as I know, all they made was learning software (I have a maths suite from them somewhere around here), so The Theatre was probably meant to be some sort of edumentainment game.
I’m fairly certain it’s an English company, despite the Spanish name. The game in question is indeed called The Theatre (r before e), and was developed by a company called Salida Software. It’s not something whispered about in certain circles, it’s not something that comes in a plain-looking jewel case, it’s not by a nameless untraceable developer… and it’s certainly not supernatural. Sequel/spin-off to the original story, which can be found here.