Dead Space hands down. Turn off the lights and crank the surround sound and you will get a little freaked out for sure.
"I do not shoot with my hand; he who shoots with his hand has forgotten the face of his father. I shoot with my mind."
I do not kill with my gun; he who kills with his gun has forgotten the face of his father. I kill with my heart." - The Last Gunslinger
I wanna say Dead Space (and so does everybody else apparently), but Bioshock has given me more nightmares than any other recent game I've played.
My status is fine, Admiral. But yours is about to go Red.
“Scary” is one of the most subjective terms that I have ever come across. Whether or not a video game is “scary” to you will depend entirely on what you find “scary” (take that for what it’s worth). I personally consider Siren: Blood Curse (New Translation) and Silent Hill: Homecoming to be extremely unsettling and very disturbing video games. Dead Space seems to be a “scary” video game to quite a few individuals so I’m sure you will be able to enjoy it if the only things that you are looking for in a video game are jump-out-at-you scares.
My vote goes to dead space as well.
In game informer, the DEVs even made a comment about how many people had claimed the game to be "Too Scary" and could only play for 30 minutes to an hour before having to turn the game off.
Whether you are into shooters or scare tactics, dead space is one game that no ps3 owner should go without.