We'll probably never see another "true" horror game in the AAA game industry ever again. Horror is such a niche genre and the costs of making AAA games is so astronomically high that it's not worth it in the end. That's why AAA horror games have more of a focus on action now. Resident Evil 4 laid down the ground work that has just been built upon (kind of) over the last 6 years. For true horror you'll have to delve into the indie market and find games like Amnesia: The Dark Descent or the Penumbra games. I think the last AAA horror game that actually frightened me was probably Condemned 2: Bloodshot but even that wasn't anywhere near as frightening as the first Condemned game. This Rise of Nightmares game looks like it could buck the trend, but like fuck I'm shelling out an additional $150 for the Kinect... also the game is being developed by the House of the Dead team so I expect horribly written/delivered dialogue and an over-the-top evil antagonist.
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