A new copy goes for £105 and up on Amazon UK, so yeah, the price has taken a hike. At least I have Fatal Frame 3 lying around. I should dig it out and play it again, since I never finished it.
Fatal Frame 3 is pretty good, although I think from a story perspective it's a little sleepy and disjointed. I definitely felt like FF4 tackled the multiple characters thing a lot better. FF2 is by far the best, and IMO FF4 and FF3 are #2 and #3 but they're pretty close.
I had a bit of trouble getting into Obscure 2. I didn't particularly enjoy the combat system, and I always found myself wanting for healing items even on the lower difficulty settings. I still need to go back and pick up the first one.
One of my favorite overlooked games is
Alone in the Dark: Inferno. The 360 version is pretty horrible, but the ps3 version fixed a lot of the more glaring issues, although it still isn't perfect. I really enjoyed the use of light/fire/electricity to solve puzzles and the open-ish hub (driving around central park) between story missions, even with some annoying physics/collision bugs that can make it hard to progress.
Still, the soundtrack for AitD: Inferno (by the same composer responsible for Obscure/Obscure 2) features some really haunting stuff from the Bulgarian Women's State Choir, and is probably one of my favorite soundtracks of any horror/horrorish game:
http://www.youtube.com/watch?v=nh2kSs89Xxw
http://www.youtube.com/watch?v=cq44F1iV8GU
In terms of mediocre/bad stuff, I've also played my fair share:
Kuon - Interesting concept (not a lot of horror games take place in feudal japan) but pretty horrible execution. It'll scratch your survival horror itch but it's not a masterpiece by any stretch of the imagination
Cursed Mountain - Another relatively unique horror game (1980s Scottish mountain climber vanquishes Buddhist ghosts with an enchanted ice pick!), made worse by some unintuitive waggle finishing moves. Make sure you google the proper motion for exorcismal finishing moves to avoid controller throwing frustration.
Haunting Ground - I already mentioned this, but it's what Clock Tower 3 should have been. Exploring the house is a lot of fun and the addition of the alchemy/accessory system gives you lots of reason to find everything, as well as a way to not feel so defenseless once you're fully upgraded.
Fragile Dreams - I'm not sure you can call this a horror game, although it feels like one at times. A lot of people talk about the atmosphere and story being totally enthralling in this game, and they're right. It even has an RE4-style inventory management system.
Cold Fear - Semi-competent RE4 clone that has not aged particularly well. This game would be a lot better with a map.
Echo Night: Beyond - Ghosts in space! Too bad your space suit makes you walk at a snail's pace. I found this game sleepy, slow, and just plain bad, but I know a lot of people like the series so maybe it's just me.
Lifeline - A totally voice-controlled space horror/action game seems like a bad idea, especially when the voice controls just plain don't work, but I had very few issues the few times I've played this. Screaming/panicking will probably cause your character to misunderstand commands and waste all her healthpacks, but if you speak slowly and clearly you can limit how often this happens. Even though it's flawed it's worth a playthrough, provided you have a ps2 headset/mic.
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There's still quite a few games that I haven't been able to get through, or haven't played in general. I'd love some recommendations on them, if people have played them:
Juon, The Calling, Ikinie no Yoru/Night of Sacrifice - I've tried to get through Ju-on and found it intolerably slow, Calling was a bit better but I had difficulty getting into it as well. I hear that Ikinie no Yoru is pretty good but my Japanese isn't that great.
Escape from Bug Island (Necro-nesia) - This "horror" game is so bad that I sometimes wonder if it's intentional (like Deadly Premonition). Some day I will slog my way through this one.
X-Files: Resist or Serve - A survival horror game set in a non-canonical X-files episode seems like a great idea, but the gameplay kept me from getting very far.
I also haven't really had much experience with the point-and-click/adventure horror PC games. Anyone have a recommendation for a good starting point?
My tolerance for crappy games seems to be considerably higher when it comes to horror games, so I'm willing to try anything.