What games are you talking about TC? Fear and Condemned? I can't think of a ton of FPS games that I would consider horror let alone survival horror.
In general survival horror is just too niche to be successful bar Resident Evil and Silent Hill. Games are too expensive now so everything needs mass appeal for the publishers to have faith in making a profit.
Very few gamers, even during the PS2 era, would go out of their way to support something like Haunting Ground, Rule of Rose or Ku-on. As long as the development costs keep rising survival horror as we knew isn't a viable genre for consoles. PC still gets some decent titles, though.
Just easier to be scary with a more limited FOV. Things can sneak up on you pretty fast.
but why is it FPS? why can't it just be First Person view?....
And do what? As games like Fatal Frame and Amnesia have shown, there's a very small (if fiercely loyal) market for first person games where you don't really do much. What else is there? You have FF where you take photos, and Amnesia where you pretty much just run. What else can you do in first-person besides "shoot"?
EDIT: And of course there's Condemned where you hit stuff with a pipe or a piece of wood. And Condemned 2 where you....apparently "yell" or something?
Formerly Known As: boingboingboing Now Reading:Great North Road, P. Hamilton