This has been bugging me at the back of my mind for YEARS. Okay so I 'remember' seeing my siblings playing a game on either a PS1 or PS2 (although it could have been a different system).
The game is third person and the level I saw took place in what appeared to be a suberbian level at night. You appeared to play as something that looks like one of the idols from Spyro

And you had a staff that shot ranged projectiles, if I remember correctly you could pick up powerups that changed the type of magic or whatever you shot.
The reason I ask if this existed or not is because I have no clue if this was a dream or reality. You would think that if I never saw the game again that it was a dream but then again my siblings rented games all the time and plus my brothers friend was over so he could have brought it from his place.