They didn't hit mainstream success with their previous titles and got restructured. It happens. If you liked their previous work then I wouldn't hold out a lot of hope for their next games moving forward. SH2R is looking less and less promising.
What a clickbait title. They'll still be making horror, but targeting a bigger audience, rather than their fairly niche pieces from earlier in their time. How exactly that constitutes being "done" with "psychological horror" I have no fucking clue.
Anyone else really worried about the silent hill 2 remake?
My heart sank when I saw bloober team was making it. It's not that they're a terrible studio or anything, it's just that their past works have lacked subtlety and complexity, two things you really need in a (good) silent hill game