Cyanide Studios, developers you might know from Blood Bowl and Styx: Master of Shadows, are currently working on a video game adaptation of the pen&paper RPG Call of Cthulhu. The details are a bit light given that its still in an early stage of development, but it is going to be a story focused RPG with a heavy dose of psychological horror and stealth mechanics mixed in.
As for the story, you will stepping into the shoes of a lowly investigator sent to discover the truth behind the death of a famous artist on a backwater island. This premise alone is enough to carry a horror game, but things are bound to become even worse for our protagonist as it appears that the dreaded Cult of Cthulhu is involved in the murder. It is going to be up to you to push your sanity to the very limits in an effort to uncover what should never be known and hopefully make it out not only alive, but also as more than a blithering madman.
And since psychological horror depends solely on the player's immersion in to the world, the visuals and the overall atmosphere are some of the most important aspects of gameplay. With that in mind, I am very glad to say that Cyanide's version of Call of Cthulhu seems to most definitely be on the right track. But rather than just blabber about it, here are all of the images so that you can see for yourself (click on them for a bigger version):