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Yes, I am talking about Nintendo's new Eternal Darkness.
Now what makes a game consist of the phrase Psychological Horror? Well, Twisted Metal Black gave it a go by showing the differnt sanities people can hoist from Natural Born Killers to Cannibles. Silent Hill 2 also did a great job, showing the waning sanity of a poor man whose life became a living hell. But the gameplay around these two games didn't really get you in deep enough to where it shocked you like so many movies have; Mothman, Silence of the Lambs and Jacob's Ladder.
The game starts you off in the year 2000 A.D. and you are Alexandra Roivas; a collage girl who recieved some alarming news about her grandfather's death. She goes to his mansion to investigate only to discover that things are definatly not what they seem. She uncovers a tale, a story if you will, of the Anceints; a group of supernatural monsters who lived on Earth way before the humans came along. She finds that her grandfather's death was somehow related to these creatures and she is warped into a conspiricy unlike any other. Can this poor girl discover the murderer of her father? Or will she go insane trying?
Yes, you understood me, your main character can go insane if you do not treat her correctly or the other characters you have the chance to control. This is what makes Eternal Darkness different from every other game on the market. You see, throughout this game, you are given the chances to play over 12/more different characters throughout history. As they are sucked towards the Darkness, they encounter a multitude of monsters and traps. If these problems notice your character, they will panic and their sanity level shall drop. Lose too much of your sanity and the game will seem to glitch, showing various forms of hallucinations and tricks. For example you may experience one of the following:
Camera Distortion
Loss of various body parts
Bleeding Walls
Character will shrink
Those are just some of the Non-Permenate problems that can happen. You got to love them.