Why do people always think that horror goes with dark + dark + dark. Really i stoped watching your video at 00:10 seconds. It is to dark, and not very new. Thought the use of entities is nice. Segments are also cool. But a horror game can be alot more scarier with ambience set 200 or something. Anybody watched 1408? well... How about a fpsc version of it. Not difficult if you ask me. All the effects they have there you can have in fpsc. But about your video. I didnt heared many sound effects. None actually. And i just saw some lights. But the screens are good and story is not bad. But you want to place the light in front of the light source and not below it. And add a effect on those lamps. Other then that, looks good. Just think about this two things:
- a game can be scary as hell(believe me) if there is full lights on with ofcourse some dam nice light effects. + some awesome game and audio effects, 1408 is nice refference
- every single object in a game has a function, a reason being there.
EDIT: @sika sina games: from your words your are very good, arent you?

, btw: i dont see very nice light effects on that screen.