I think what's important to death mechanics is that is discourages you from screwing up. As long as there absolutely isn't any punishment it's alright in my book.
That being said, I was okay with Epic Yarn's death mechanics, because I really didn't want to lose all those damn beads. I didn't...
Bioshock and Portal are both games that are great at establishing atmosphere, particularly Bioshock.
A video game none of you are probably familiar with, Boktai, I also enjoy the atmosphere of.
One thing I loathe about video games is having to replay any part of them more than once.
I have this reaction whenever I die and realize that I saved about two hours ago. It's often enough to make me stop playing altogether.
Notable offenders: Eternal Darkness, Resident Evil, Disgaea.
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