Arshaq13 said:
I'm only mentioning this because I haven't seen anybody else mention it but(and I have just finished playing it, so take this with a grain of salt if needed),
Charnel House Trilogy. It's pretty new and it's a psychological horror game that stars a little known man named Jim Sterling.
It's not the greatest but it's horror done right.
I actually just played through that yesterday. Short as hell(90 minutes from start to finish), but also creepy and haunting. I will admit that Jim Sterling-son's voice initially felt distracting because of all his internet reviews and jimquisitions and such. Though I soon got over it.
Similar to that is "The Last Door" which is a Victorian horror episodic series that seems equal bits Poe, Lovecraft and David Lynch(there's a fair bit of mind screw). 6 episodes are complete as of right now and each episode is maybe an hour long. Just be warned, though, that the graphics are deliberately pixelated for aesthetic(and likely budget) reasons and while there are a lot of questions raised, so far there haven't been many answers given.
It's unclear just how many episodes or seasons(they're halfway, maybe, through season 2 right now) they plan to do. It's made by a small studio in Spain and each of their episodes are crowdfunded. However, I believe the first few episodes are free if you want to see if it's your thing.
Or on the less horror side, the Blackwell series, which involves 5 games(4 of which are bundled) is quite good. It's about a woman who can see ghosts, including one who is pretty much stuck to her, and her job is to help them pass on by helping them realize that they've died(which is a bit harder then it sounds). More mystery, with the occasional bits of horror thrown in, but quite compelling. The first game has the usual adventure game puzzles(and a huge info dump early on) but the later games tend to be much more about investigation and interrogation to learn important facts and where to go next. The art style and writing gets better with each game as well.