I love the subgenre, but the vast majority lose their potency the first time you die. (not all of them, mind) Once you've seen the extent of the capabilities of what you're hiding from, the fear tends to go away and "how do I take advantage of the AI?" kicks in. Outlast is my goto example: Once I realized that the beefy-boi zombie guy (it's been a while, I don't remember anyone's names) can't kill you fast enough to present a danger and that you can just run past him whenever he's around, the game stopped being An Experience and became A Video Game, if that makes sense.
It's also hard to shake the knowledge that the AI "knows" where you are at all times and is basically making a big show out of pretending not to. (extremely simplified, but still) Not a big deal in a normal stealth game, but when you're supposed to be afraid... kinda kills the vibe.
Making a horror game that stays fun and scary time and time again has to be a monumental effort, and I can't even begin to imagine going about it. The obvious tact that comes to mind is randomization a la Phasmaphobia, but even then, routine eventually sets in and you know that the worst the ghosts can do to you is put their hands over your eyes until you ragdoll. Alien: Isolation does a good job of staying scary due to the good AI and the design making every move as tense as possible, but even that becomes routine.
It's a tough nut to crack, but I think we're overdue for a gamechanging horror title with a truly fresh idea that takes the genre by storm the way Amnesia did.
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