I've had animal crossing new leaf for quite some time right now. I've been searching around the message boards looking for Call of Dutyes for the dream suite. Which lets you visit other people's towns region specific. So I found this one Call of Dutye that led to this place called "Aika Village" Apparently it was made by this Asian Japanese player. So I went to the dream suite and entered the Call of Dutye that led to the mysterious village. It was a horryfying dark experience.
This is someone's random theory about it.
The story is that of an inner struggle. The first and last houses represent what appears to be and what really is. In the first, little Aika seems to have a happy loving family, and loves her mother dearly, and everyone gets along. But there's something hidden from us—a room we can't see. As we travel through the town, we see the struggle within Aika's mind, and finally find out what is truly going on by looking in the last house.
Aika's mother is not the lovely mother she seems. She seeks perfection out of her child, as if Aika were a flawless doll. Aika tries so hard to communicate to her mother that she loves her, in hope that her mother loves her back. But it's never good enough. Her mother is never happy with her. The more Aika's mother hates her, the more Aika grows obsessed with winning her mother's love. She wants to break away from the feelings of isolation, from feeling like an object. This is what the axe in front of the doll represents to me, and all the toys always looking away from the player/front of the house/etc.
Eventually, Aika starts to lose touch with reality and becomes so obsessed with her imperfections that she decides to end her life.
I don't feel like there was any kind of possessed doll at all. I never got that feeling through any of my trips, and then read fan theories and was kind of surprised at that. Though I think it could easily be that was the intention, it's just not the feeling I got while playing through it.
Honestly during my first walk through, before seeing everything, I was thinking maybe the mom died and the dad was trying to resurrect her through alchemy and was killing dogs to do it, trying to make Aika happy again, but he failed so many times that he went crazy and ended up killing Aika to bring the mom back or something >_> But of course by the time I finished, I didn't think that anymore!
Anyway, I feel no matter what theory I come across, and including my own, there are symbols and things in the town that contradict what has been said, or are simply not explained at all.
For example, the egg/piano room. And the dolly feast room. I don't understand those at all, especially in the context of my theory.
Also, some random symbolism that people seem to miss often:
Red shoes by beach—Strongly indicative of Aika's suicide.
If you've never turned the camera 180 degrees in the back room of the 2nd house... do it.
The flowers are carnations, which you receive on mother's/father's day.