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The atmosphere tends to be pretty big for me. Instead of being scary at a few moments due to jumpscares, a good horror game gives the sense that you're not safe and makes you feel unsettled the entire time while playing it. Horror is obviously more complex than that, but most of the good ones I've seen have a good atmosphere and a good presentation.

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Yes, I think it is better to give an atmosphere and feeling of insecurity than the use of sudden scares.