There's actually a growing subgenre of horror videogames that utilize this aesthetic to great effect. It's mostly an "indie" thing right now, but heck, the most recent prominent example I can think of is Puppet Combo's 'Murder House' game, which looked and played like a '90s PS1 horror title, tank controls and all, and yet it was still scarier and spookier and than Resident Evil's latest triple A title.

Here's the Steam page if anyone is interested in what it looks like:

https://store.steampowered.com/app/1064460/Murder_House/