I came in to say condemned. If you're looking for a game in which you avoid the baddies, or it's preferred, Thief series (start with 1), Mirror's Edge, Breakdown(more like condemned than outlast) (original Xbox), Fatal Frame (more like outlast than condemned), Manhunt, I think Cryostasis is supposed to be similar as well.
I haven't played Outlast, but if you want psychological horror with combat, then you should check out the Silent Hill series and System Shock 2. I've also heard cool stuff about Dead Space 2, it's not the most hardcore horror game, but as far as action horror goes, it's supposed to be good. I've seen a video of an eye surgery scene in the game and even if you get it right, it looks very screwed up. --- I belong to the blank generation - Richard Hell http://www.last.fm/user/akuma634\