Horror is still alive though what used to scare us no longer works just like Hollywood is finding out. I mean you tread back to The Texas Chainsaw Massacre and that film just isn't scary any more and to be fair most modern films are actually scarier than anything we used to call scary, but we are just desensitized with the same going for games.. It takes something new and unique like Amnesia to truly scare and most developers don't have the courage to take the risks the genre needs to carry on.