Demons Souls shows how level design can act both as a mechanism and as a means of narrative delivery. As Henry Jenkins states, game spaces can serve as a means of "narrative architectures", when the space itself tells stories via exploration. In the case of Demons Souls, architecture is used not only as a decoration but also as a kind of spatial persuasion, which shapes the behavior of the player as well as supports the main themes of punishment and spiritual decay.

The most obvious example of architecture as a tool for telling the story would be the Nexus itself. Being a symbolic point of connection between the mundane world and the spirit world, it is presented as a monumental construction, which resembles a cathedral in its vertical dimension. The height of this building gives the feeling of hierarchy, where the player appears among the forgotten dead at the bottom, while colossal statues take the heights. With the help of architecture alone, the designers show where the player stands in this world created especially to imprison ancient creatures. The communication via space proves the idea of integrated narrative suggested by Henry Jenkins, when the story can be discovered in the process of space exploration, rather than being told with the help of cinematic exposition.

FromSoftware also uses the architectural approach known as "compression and release" in the game design. It is widely discussed in the theory of architecture and in the theory of level design. Alternation of narrow corridors and wide outdoor spaces allows regulating the emotional condition of the player through the contrast of the spaces. Claustrophobic corridors (Compression) increase the anxiety, making the player focus on moving in this restricted space and seeing the enemy in front. Those oppressive spaces are interrupted by big castle areas or courtyards (Release), which momentarily decrease the psychological tension before moving again into enclosed spaces. Such sequence of rhythm of the spaces turns architecture into an affective system, which shows how the level design can control emotions of the player without any verbal means. Demons Souls gives examples of the architectural spaces that allow or hinder the movement of the player. Narrow corridors restrict any kind of evasion, forcing the player to engage into direct fighting. Blind corners, collapsible corridors, traps, and difficult ledges turn the environment into an active participant in combat situations. Video games tell their stories via the rules and systems. In demons souls, architecture enforces spatial awareness, forcing the player to remember these values through repeated failures and mastery rather than explicit instruction. Among the most important design aspects that should be noted here is the interconnectedness of the levels of the game. Demon's Souls build environments where spaces loop onto each other. Following a series of dangerous and challenging encounter, the player opens up elevators, gates, or even ladders connecting remote areas with the Archstone. As a result the player receives a completely different mental map of the environment, but enemies' locations and the gameplay's difficulty remain unchanged. In this way, such design encourages the development of spatial memory and gives a feeling of accomplishment, turning the hostile labyrinth into a clear navigational space. Such accomplishments are not associated with a player's growing stats, but with his better understanding of architectural relations, in this way, spatial knowledge turns into progress in a traditional way.

In the end, the architecture of the game stands for the physical embodiment of the spiritual downfall of humankind. Castles, cathedrals, and institutions are all decaying, corrupt, and possessed.

Through the application of environmental storytelling, procedural rhetoric, and architectural symbolism, Demon's Souls shows the extent of creating narratives through the level design. The game spaces do not only test the mechanics of the player, but they also tell stories through his interaction with them. Thus, FromSoftware shows the unique feature of video games to tell stories through architecture and play, making Demon's Souls a landmark game of environmental storytelling.