Many people love to be scared; it's absolutely a form of entertainment for them. But is there a point at which this fear becomes decidedly...un-fun?
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No, if you get scared then don't play those games
I think most would have a limit to what they can handle. That limit would change from person to person so it depends on the individual when it becomes un-fun.
I can see how the constant tone of dread / terror in a game can ware on a person. Movies succeed because they're able to break up the fear. It's not a constant onslaught of stress.
I tried to introduce dead space to some friends, but many find it too scary. For me thats part of the fun, overcoming those fears.
As someone who has scooby-doo-esque reactions to getting frightened (comic-book style *GASP* and all) I think VR marks a point where enjoyment is being infused with raw fear.
Then again, I don't think of that as a bad thing, I think its amazing that videogames are now evolved to that point where they can elicit such primal emotions!