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Name me a scarier game. Any example is fine.
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I would cite the Silent Hill games. Back when Silent Hill was fresh and allegorical, not the awful, Mario-style franchise it's become. Back when Pyramid Head was a bad ass, and wasn't just Konami's avatar.
Amnesia does have the benefit of being in first person, which makes everything scarier.
The Condemned games are pretty scary, but I would chalk that up to the realism of the graphics, not necessarily the atmosphere. I heard the game Penumbra is pretty scary, but I haven't had a chance to play it. I get the impression I'll be underwhelmed.