It's true. There are no scary game anymore that aren't indie games. Developers just lost their touch, and moved on from a genre that made money left and right.
Well, if I were to make a horror game, I would do it right!
First off, quick scares aren't enough. You need that weird stuff that doesn't make any sense and therefore scares you. Remember in the binding of isaac where *You find a noose in the chest at the end, and it plays a creepy chord and then cuts to isaac hanging from the noose by the neck?*
This is what I mean. Something unexpected and absurdly disappears before you can think about it while it's happening. Another example can be where if you interact with that certain wall a number of times in Yume Nikki, it acts like the game forgets up and crashes. It's both scary and surreal.
The awkward unexpected moments are what made games scary, in my opinion. Share YOUR idea and example (if there is one) of what made horror games scary.