Oculus Rift seems ideally suited for horror, as evidenced by our recent eyes-on at IndieCade. Developer Greenwood Games (consisting of industry veterans from Vicarious Visions and Ironclad Games) is also taking a stab with a new psychological horror game called Alone.
Alone puts players in a virtual living room and goes completely meta by having them play through a virtual FPS horror on their TV. The FPS, called The Witching Hour, slowly begins to come to life, enveloping the living room and bringing its 19th century supernatural atmosphere directly to your face.
The game's prototype runs 10 minutes and is available to download from Greenwood's website, for anyone that owns an Oculus Rift VR dev kit. The developer is shooting for an episode-length 30-45 minute finalized version for early 2014. It's set to come to PC, Mac, and Linux. For more, check out the game's Kickstarter page.
Shacknews' crowdfunding policy requires games to have a prototype for front-page coverage.