Since it's a proof of concept, I'll edit my feedback as needed.

Pros:

Movement is extremely fluid and it feels nice for a game where eventually you're gonna be running away from something. 

Found the table in the room, the graphics are nice on those.

Cons:

The controls aren't entirely accurate since they omit using ctrl to crouch.

Yes, I know horror games shouldn't be bright, buuuut, the flash light could be just a smidge brighter, or at least add in settings and let the players decide whether they want it dark or not.

And it needs music. Even just ambience, it needs some sort of noise, even if you just add in the sound of footsteps.

So Far:

It's nice that a proof of concept executed so fluidly, I'll be sticking around to see how progress unfolds.