Loks really like PS! some resident evil 1,2. Or Silent Hill 1 maybe. Yes, it is the right style.
It's funny, the main visual feature of PS1 horror for most people is the way the PS1 handled lighting. As it couldn't handle real-time lighting, devs used to paint the light onto the surrounding area as you walk through. But the first thing I developed in the game was a real-time lighting system, because I just love the way Silent HIll 2 looks when James is wondering around the interior sections. So even though a lot of the style is PS1 era, I'm borring a few things from the PS2 ;)