There's a fine line any artist walks when trying to titillate and terrify at the same time. But making video games scary is especially tricky. Repetitive behavior—even when that behavior is running and hiding from flesh-eating monsters—doesn't mesh all that well with the spontaneity required to make someone jump out of their seat. That, and always knowing, no matter what happens, you can reload and try again.
I'm a coward, so as I noted in my impressions of Outlast: Whistleblower yesterday, I actually find the process of dying a grisly death and then restarting to die a slightly less grisly death relieving. Empowering, even. But for the people at Frictional Games, the small Swedish studio behind horror sensations like Penumbra, Amnesia, and the upcoming SOMA, that's the whole problem.