For me it has to be some of the games from Chinese and the Indonesian horror. Those games for some reason never become popular. But they had pretty good scare. Apart from that no other game that I have seen from american market is scary enough. So it all seems like a game that may be different for each one of us.
My favourite horror game is the horror survival named Dead by Daylight. I find it pretty fun to play especially if you have friends to play with you. But I mainly play as a killer there, I don't like the feeling that I might be caught at any moment by the killer when I play as a survivor. Friday the 13th is also in my game library but I don't play it due to the discontinued updates.
Yeah it's a really fun game. I think they have Dying Light 2 now as well I can't remember. I played halfway through the first Dying Light and it was a blast. One of the best games I ever played hands down. I gave it to my little brother as a Christmas gift and regret doing so lol. I would love to buy it again soon or at least play the 2nd one. Would be a blast
Until dawn is also one good game. It has some of the interactive course of the game. And at the end you also make decisions to change some part of the game. If you die, you have different game ending. And if you survive then also the game ending is different too. So it depends on how the ending works in such context.