What do you want a horror game to be? Most people honestly seem to use "how many jump scares can this creepy haunted house manage?" as their metric for efficacy in horror. Amnesia's probably the most effective game in that field, followed by Slender. This is, of course, not having played any Clock Tower or Silent Hill, beyond the first couple acts/chapters of Silent Hill: Shattered Memories.
Shouldn't a real horror game make us believe in the devil, like The Exorcist asks us to do? Or make us fear the beach, as Jaws does? Or even make us feel a little crazy, like Hotline Miami does? Stephen King argues for three stages of horror in one of his nonfiction works (I think Danse Macabre.) There's suspense, which is the moment where we know something could happen. Think Brett in Alien, looking for Jonesy after the Alien's already burst from Kane's stomach and the cat's run out of the ventilation shaft. Then there's terror, which is when the audience knows something bad is going to happen. That's when Brett finds the Alien's skin, and realizes it shed for some reason; that means it's probably growing. Finally, there's horror, which is when the bad thing actually happens. Brett dies off-screen, but it's really when the Alien descends behind him that we experience this horror.
But I would argue that there's a fourth stage. The fourth stage doesn't have a catchy name; I'm calling it "social horror" for the purpose of this conversation. Social horror is what the most effective horror accomplishes; it makes us fear the world around us. It makes us believe that what is on the screen could actually happen to ourselves. This is probably the hardest kind of horror to achieve, and it requires some actual insight into human sociology or psychology to accomplish effectively. And social horror is obviously not exclusive to the horror genre; a quality satire, science fiction story, or even shonen anime can accomplish this piece. But horror should do more than "scare us" for a moment, it should shake us a little bit for good.
While Amnesia is, in many ways, an attempt at a legitimate horror game (as the evils of man are as implicitly responsible as eldritch horror, and it doesn't present this in a campy way a la Resident Evil,) the only legit horror game I think I've ever really hung out with was I Have No Mouth, And I Must Scream. I could also give qualified responses for Majora's Mask and Friday the 13th.
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