Super late on this, but I've spent that last few nights playing through outlast on PS4.
48 inch tv, shure 840s and lights out.
Jesus christ. The atmosphere this game creates is unbelievable. Every time you have a brief reprieve (usually panting like a dog while you cower under a rusty bed) you stop and realise that you've been playing with a clenched arsehole for the last 15 minutes.
The jump scares work as intended, but its the underlying atmosphere that gradually seeps under your skin which makes this game so special.
There's one section where you're outside in courtyard, it's raining and your night vision is next to useless. Also occupying this courtyard is a 7 foot nemesis style behemoth who is hunting you and wants to rip your heart out with his hand.
I ended up panic running around the area with no plan, just pure desperation and a primal need to escape (the look back feature while running is a stroke of genius)!
The threat is always far worse then the actual consequence of getting caught, which to me, is how all great horror should work.