I’m thirding Alien: Isolation, one of the best horror games ever made and a really loving tribute to the movies as well. On console they even had a feature where the alien listened in on you through the microphone and would hear if you made a noise. Not sure how it played out in practice as I didn’t play it on console but sounds rad.

The Outlast games are also frequently brought up as great horror games. I haven’t played them myself but have seen them played by others. Look pretty good, though a little more jumpscare heavy. Still atmospheric though.