SH3 has the greatest atmosphere of any horror game, or any video game for that matter. The aeshtetics of the otherworld are unmatched, the transition from the normal world to the otherworld is the coolest thing I have witnessed in a game, couple that with the most grotesque looking monsters and you have yourself the best horror game ever made. Also the soundtrack is perfection. This game is so terrifying that when I first played it (I was 12 or 13 at the time) I had to leave all the lights on and be in the same room with my mom and even then I couldn't hardly play it.
2 - Silent Hill 4
This game feels like a Japanese horror movie, reminiscent of something like Kairo. For whatever reason this game received some flack when it released, some fans saying it wasn't even supposed to be a Silent Hill game and that it strayed from the series, the developers however confirmed that it was always meant to be a Silent Hill game.
3 - P.T.
Technically a tech demo, you can still look at this as a game of its own. Some people think this was meant to be a teaser for Kojima-san's Silent Hills but really it's a game of its own. This predates pizzagate which is interesting in that it features references to satanic ritual abuse and child trafficking.
4 - The Suffering
Western horror games are usually garbage, but this one is an exception. I played this quite a lot back in the day, for some reason it was easier to play (not in terms of difficulty) than Silent Hill 3.
5 - Siren
This game plays out just like a Japanese horror movie, there are even Japanese faces transposed over the characters! If you're into j-horror you'll probably enjoy this game
