Clive Barker's Jericho, not as good as Clive Barker's Undying (which is on sale on gog.com by the way), but still it's a very good example.
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Don't know if this is been mentioned yet, Dead Island, extremely awesome for zombie horror game. Can't wait to get riptide.
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Cry of Fear, its a half life standalone Mod, and has the old school survival horror feel to it, and easily one of the creepiest gmes ive played on steam yet, and its free, has like a silent hill feel to it, but FPS and rly builds atmosphere, not for the faint hearted
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+1 to those
I would add the already mentioned FEAR (only first one), Doom 3 and Condemned.
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Wow, I'm surprised that nobody has suggested Metro 2033/Last Light yet.
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Try these:
Dead space
F.E.A.R
Outlast
Left 4 dead
Bioshock 1,2
Forest (early access game)
Silent hill
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Hmmm well the first Amnesia is a good contender as well as the first Dead Space but only if you are ok with having action with your horror. Cryostasis is another but that has since been removed from steam. That's pretty much it as far as I know.
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Deadly Premonition The Director's Cut. It's a pretty bad, and bad looking game. Has lot of issues on PC and consoles too, but it's story really worth it. It's 5.10$ in Indie Gala's January Bundle, but I really enjoy it. The main plot is about a small peaceful town Greenvale, where a murder happened. And you the skizophrene FBI agent Francis York Morgan have to uncover the truth about the mysterious Raincoat Killer. It's like Alan Wake with low budget, but the story REALLY WORTH IT!
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Silent Hill: Homecoming (nice horor, but original first 4 japanese titles were much better, btw.)
Cry of Fear is great and also it's for free.
Penumbra series
Amnesia series
Dead Space series (more action titles, but still horror)
Lone Survivor (nice horor, but with superugly graphics)
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besides Amnesia
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