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http://store.steampowered.com/app/22120/
http://store.steampowered.com/app/391720/
Also try the Silent Hill series if you have the means. The older ones are much better but the others aren't bad for a horror newbie. The only one you wouldn't want to start off with is Shattered Memories.
And listen to your friends recommendations. Especially F.E.A.R. is a great game with amazing
cinematics and AI. You can get it super cheap quite often.
http://store.steampowered.com/app/410710/
http://store.steampowered.com/app/238210/
This is fate i've stumbled upon this, This is the first time I've started posting in the steam community! I live and breathe horror. This is destiny. I practically only play horror games.
My answers will probably be different from most because I'm more focused on story line then gameplay. These are the games that have made the biggest impact on me. And been the most terrifying.
http://store.steampowered.com/app/311240/
This game is beyond amazing. It's a multiple choice puzzle game. That's really twisted and horrific. Think "Saw II" but anime styled with better character development and more sci-fi haha.
http://store.steampowered.com/app/319630/
This game is just so sublime. Kind of like a telltale game. Each episode gets more and more horrific. More on the thriller side. But very disturbing.
http://store.steampowered.com/app/19000/
I love this game so much. It's one of my favorite Silent Hill games, if you have a way of playing "Shattered Memories" do it. It's my favorite in the series. My 2nd favorite is Downpour. (they're both not on pc) I find the modern Silent Hill games to be more terrifying. They put so much detail in them. It's more the mini anthology horror stories within them that are dark to the core. I've finished almost every Silent hill game. I hands down think these 3 games are 10x scarier then the older games.
http://store.steampowered.com/app/232430/30170/
This game is just soo chilling. It's not horrific but definitely intentionally trying to creep you out. And has very tame horror moments. Worth playing though if you love games for story line. The house environment in this game gives me chills every time.
http://store.steampowered.com/app/268050/65812
/
I love this game to death. I really got over the combat but the story line is amazing. You need to play the DLC with Kidman it's terrifying. The creature in this game "Shade" is easily the most terrifying video game villain I've ever come across.
These are just the games that have genuinely scared me. And I'm really hard to scare! I've played most horror games you can think of anything I haven't listed is because I personally don't find it to be scary.
There's a lot of Horror games that aren't on PC that I highly recommend too
Wii/Gamecube -
Grudge
Fatal Frame Series
Silent Hill Shattered Memories
Eternal Darkness (This is a MUST for all horror games)
PlayStation -
Silent Hill series
Fatal Frame Series
Siren Blood Curse
Until Dawn
Heavy Rain (You need to play the taxidermist DLC it's beyond scary probably the most terrifying game i've ever played)
Beyond Two Souls (It's about ghosts, ghosts are scary it's scary)
Xbox -
Rise of Nightmares
This game is surprisingly good and original. Game play is repetitive but the unique controls and unique story line make up for it.
I recommend getting a VR because there's no scarier way to play horror games. Also I recommend the walking dead games but they don't scare me at all they're just great.
Im surprised no one has mentioned Silent Hill, esp. SH 2, a masterpiece for me.
Last year:
http://www.lastyearthegame.com/
Allison road:
http://www.allisonroadgame.com/
Visage:
https://www.kickstarter.com/projects/1058493022/visage-horror-game
Friday The 13th:
http://bloody-disgusting.com/video-games/3414506/friday-13th-game-escapes-window/
Perception:
https://www.kickstarter.com/projects/perceptiongame/perception-3
Halloween:
http://bloody-disgusting.com/video-games/3411643/michael-myers-laurie-strode-live-new-dead-daylight-footage/
The Hum Abductions:
http://thehumuniverse.com/the-hum-abductions/