Update:
I not sure if I should call this a graphic update, visual update, or... Whatever else. Basically I'm thinking of using a visual novel way of displaying characters when you talk to them. So basically showing a full body with facial expressions. Don't expect this to be in the game, it's just something I've been thinking of having. One thing I'm planning on doing is adding light effects. There's a plugin that gives you a flashlight when in certain dark areas. It also has the ability to give light effects in other areas too. This is perfect for my game since its part of the horror genre.
Story Update:
I'm thinking of getting rid of the vision mechanic. Just in case no one remembers, the vision mechanic was basically the same as Daniel from Amnesia: the Dark Descent, when he would remember something from his past. The only difference being that my vision mechanic would be a cut scene. Also I guess calling it a "mechanic" is kind of dumb since its not really a mechanic. Anyways... I'm replacing it with cassette tapes. These are items that would reveal some history of the people who live in the music box. The reason for this change is because I want players to choose whether they want to listen or not. Rather than being forced to, like the vision mechanic. This also provides more imagination since there's no visuals, which helps with... "Tell don't Show." Sorry that this idea keeps getting brought up, haha. Also I want to clarify that there will still be animated cutscenes, (especially with some side quest) but there wont be too much cutscenes, that's it.