DreadOut (2014) is an indie horror game in which you play as Linda, a school girl on a field trip that takes a wrong turn and gets her (along with her teacher and classmates) trapped in a literal ghost town where seemingly every spirit is out to kill or possess you. As the rest of your classmates are picked off one by one, your goal is to find a way to rescue your friend Ira and, eventually, a way to escape the ghost town without succumbing to the ghosts' malicious intentions.
In practice, it plays a bit like a cross between Silent Hill (you're wandering around a creepy abandoned town) and Fatal Frame (taking pictures of ghosts to vanquish them), but without any sort of survival-horror health systems or resource management. Although it has a quasi sort of combat system vaguely reminiscent of a first-person shooter (if you substitute your camera for a gun, it's kind of the same principle), this is more of what you'd consider a "pure" horror game where it's not at all about the action -- it's more about the atmosphere and the scares, with hints of light puzzle solving sprinkled into the equation.
The game is split into three chapters; an introductory dream sequence that acts as kind of a prologue or teaser for the full game, and two full chapters where you're trapped in a location (one is set in a school, the other in a mansion) and trying to find a way out. Each chapter has some kind of vague over-arching goal you're trying to accomplish, but it's really just a matter of "try to find the next thing you have to do to advance the game" while dodging ghosts or taking pictures of them in the right way to vanquish them, solving puzzles (sometimes by finding and using inventory items like keys, or by taking pictures of things from the correct angle), and facing a sort of boss encounter at the end of each chapter.
As a low-budget indie game, it definitely looks the part -- low-resolution textures, blocky models, stiff animations, flat voice acting, weird user interface, stiff and sometimes unresponsive controls, random poor design choices, etc -- but it actually works surprisingly well as a horror game, not just aesthetically but mechanically as well. I went into DreadOut with no real expectations, other than my own desire to enjoy it since I like horror games so much and am always looking forward to finding horror games that are actually scary (or at least entertaining), and came away really pleased with the experience. It's not perfect, mind you -- even in terms of its horror elements, it has some rough spots -- but if you like horror games then this is one I can absolutely recommend.