The reason it's so belated is that this game is impossible to find in Australia, so I had to order it in from the UK. Nevertheless, here are my spoiler-filled thoughts on the game so if you haven't played it consider yourself warned: I will put a warning when I get into the events of the game's storyline.
The brilliance of Shattered Memories is that it incorporates into the gameplay one of the underlying influences of the Silent Hill series, namely its debt to psychoanalysis. As the player character, one is psychoanalysed throughout the game: it monitors the player's responses to questions given by the psychologist and interactions with the world during gameplay. Based on how the game 'perceives' the players psychological inclination, it alters the environment, monster designs, and characters accordingly. For instance, a psychologist asks the player probing questions concerning one's atitutdes towards family, sexuality, alcohol use, and sociability. I've not seen such a direct incorporation of the player's self into a game since Psycho Mantis in Metal Gear Solid, which is a shallow gimmick compared to how it's used here.
It also appropriates another core aspect of the Silent Hill series, ontological confusion or the inability to separate psychological from physical reality, to structure its narrative. In this respect they remind me of David Lynch's films, especially Lost Highway. However, instead of hellish, grimy, industrial settings, Harry Mason is placed in an eerily frozen world inhabited by "monsters from the id." These sequences are effective emotionally and tonally, creating a sense of fear and helplessness as the player can do nothing to combat them. (>>>>>SPOILERS, do not read on if you have not played the game<<<<).
Im summation, I think they've revitalised the franchise and shown that the horror genre can still profitably be pursued in a more psychological direction. The game is probably too sophisticated in its handling of themes and its subject matter to make a serious impact on the industry, but I hope others will follow its example. In comparison, Silent Hill: Homecoming is a fairly faithful and playable tribute to the core SH series, but is too slavish to the formula without offering anything significantly new (at least from what I've played). For those that've stayed with me, how did you feel about Shattered Memories, the other more recent SH games, or the prospects of survival horror generally?