That was... kind of interesting. Some stuff (I know it's still in progress, but when you post a WIP for the first impression, it actually has to contain lots of stuff that will be a part of the final output) to mention:
[•] It needs music and voice. Horror-type effect cannot be achieved in such a low-poly environment, so you need voice to make the player imagine how the character feels.
[•] The intro shows Silya and Hevar. They are standing in the edge of the path, which is really unrealistic, because they are supposed to be coming from a path, not through the woods. After a while, a fade filter comes on, the lady vanishes and of course Hevar is still there.
[•] When the ghost lady appears, you should add the SacrificeUnit.wav sound, it's in the Abilities -> Other -> ANsa.
[•] You can add some sounds to be played on the corpses, e.g. some cracking bones.
[•] Every Blizzard model needs to be replaced. If you want horror to happen, you need to make it realistic and these trees, cauldrons, fire are dull. You need to add some realism, you know? For example, that corpse can't be eternally getting burnt, at least decrease the volume of the fire (yes, extra model) and make the body black. The fountain also can't concentrate this amount of fire, without the fire being exposed to the nearby trees. How could a concrete-type structure can retain and be on fire like that and also not expand the fire towards the nearby trees? Way unnatural. You get my point, I guess.
[•] Fog needs some work, you also need some custom light, for example the light to be expanded only at the position of the character, so that the player will have the feeling of "what else awaits me?"
[•] You can also add sounds, from like behind (offset), so that the source of the sound is unknown. Practically, don't make the sounds global, except for the wolf's one.
[•] Use third person camera, this camera is no frightening at all. The player must be "in the game" not "above it".
[•] He is referring to his wife too much. I mean, strap on a pair for Christ's sake, I'd say!
Well, this reference is so intense, that for a minute I forgot she was his wife and that was his mother instead. This is a result of his fear (you know, when we were supposed to be afraid as kids we used to call "mom", so this wife-calling is the same situation here).
