An old saying goes that a hero is only as good as their villain, but in the realm of horror, the villain tends to overshadow the hero. This isn't the case quite as much in horror video games, as both heroes and villains can truly manage to be equally as appealing.
With all that being said, sometimes really good villains from the realm of horror games tend to get overlooked, with there being a cornucopia of excellent examples. In fact, some of them are so sinister, they have somehow managed to overshadow literal demons with their particular brand of villainy.
Calypso (Twisted Metal: Black)
Out of all these games, Twisted Metal: Black is the least strict in terms of horror, but it manages to be scarier than most traditional horror games. Unlike the previous games, where Calypso was a flamboyant character who spoke eloquently, Calypso is silent in Black, with a design more in line with the game's less comical tone.
Portrayed as a creepy, hairless man with a black glass eye who sits upon a throne of damaged cars, Calypso is a bit fairer in this game, but very rarely do the competitors of the Twisted Metal competition get what they want when they approach him. In fact, the only person who can truly defeat him is someone far eviler than he is.
Betruger (Doom 3)
Speaking of bald men with unique eyes, Doom 3's Malcolm Betruger is so creepy he manages to outdo actual demons. The head of the research division on the UAC's Mars Base, Betruger's unorthodox experiments causes his subordinates to be scared of him, which leads to the UAC stepping in and investigating his activity.
It's revealed that Betruger opened up a portal to Hell, leading to an armada of demons taking over the base, with only the infamous Doom Guy being able to stop them. Throughout the game, Betruger taunts Doom Guy, which ends when the villain is turned into a winged demon known as the Maledict, which leads to a terrifying boss fight.
Wendy (Rule Of Rose)
If the game played out like the fairy tales that inspired it, perhaps Rule of Rose would see Wendy and main character Jennifer living happily ever after, but that isn't the case. The founder of The Red Crayon Aristocrat Club, Wendy soon befriends Jennifer and the two fall in love.
Unfortunately, this love story ends in tragedy, as Wendy becomes jealous when Jennifer shows more affection towards her new dog Brown, so she orchestrates events that lead to Brown being beaten to death. What follows is a series of events that lead to Wendy, along with the rest of The Aristocrat Club, being brutally murdered and Jennifer being left all alone.
Lionel Starkweather (Manhunt)
Voiced by the legendary Brian Cox, Lionel Starkweather was once a prominent filmmaker, but a series of flops sent him down a path that led to him making elaborate snuff films. In Manhunt, Starkweather frees convicted murderer James Earl Cash to make him the star of his latest vile venture.
After slaughtering gangsters, hate group members, deranged psychopaths, and a deranged man in a pig suit, Cash murders his way through Starkweather's empire before slicing his head off with a chainsaw. It goes without saying that Starkweather succeeded in making Cash an even colder killer, but he may have done so a bit too well.
Walter Sullivan (Silent Hill 4: The Room)
The town of Silent Hill is a scary enough villain as it is, so that should make the idea of any of the games having a true villain almost perfunctory. Regardless, the divisive fourth entry proves that it can be done with serial killer Walter Sullivan.
A murderous religious zealot who feels that it is his mission to murder 21 people in order to complete the "21 Sacraments," Walter Sullivan is a terrifying presence throughout the game. What makes him scarier is how his victims become horrifying monsters that will haunt the dreams of many players.
The Xenomorph (Alien: Isolation)
A masterclass in terror, it seems as if Creative Assembly's Alien: Isolation has been somewhat forgotten about. This is a shame, especially since the game recaptured the terror of the original film from 1979, with the Xenomorph being more terrifying than ever. After years of being a bit of a joke, Isolation's portrayal of the creature that laid siege to The Nostromo was a shot in the arm.
What makes this version of the Xenomorph so terrifying is that its AI is near-perfect and it can show up at any time, attacking Ellen Ripley's daughter Amanda from out of nowhere. The Xenomorph isn't the only antagonist in the game, but it is certainly the scariest.
SHODAN (System Shock 2)
As time has gone by, SHODAN, the main villain of the underappreciated System Shock series, has received a cult following in her own right. While her presence in the first game is memorable, it's the more horror-centric sequel System Shock 2 that gives SHODAN her time to shine.
When the military spaceship Von Braun becomes overrun by an infection that turns the crew into The Many, a survivor named Polito leads an unnamed, amnesia-stricken soldier throughout the madness. Obviously, SHODAN is involved, with her reveal coming in one of the most shocking moments in gaming history.
Daniella (Haunting Ground)
Haunting Ground is one of the most disturbing games ever made, with the game dealing with heavy themes including voyeurism and incest, which are themes that will get under most players' skin. Of the four villains in the game, Daniella is the most chilling, with her inhuman perfection making her highly creepy.
On the surface, Daniella, the maid of the castle that Fiona, the main heroine, is trapped in, seems like a perfect human being. However, this comes at the cost of being able to feel or enjoy anything, causing her to lash out towards Fiona out of jealousy.
Scissorman (Clock Tower)
Scissorman, the main villain from the first two Clock Tower games is uniquely terrifying. A persona attributed to the demonic Barrows brothers, the killer that made his debut in a Japanese-exclusive SNES game called Clock Tower, is heavily reminiscent of slasher villains, such as Jason Voorhees and Michael Myers.
Much like the Xenomorph from Alien: Isolation, Scissorman will appear randomly and can attack the main character, Jennifer Simpson, at any point. Both incarnations of Scissorman take sadistic pleasure in murdering people, which gives them a terrifying prescience that makes up for their small size.
AM (I Have No Mouth, And I Must Scream)
Based on the novella written by Harlan Ellison, I Have No Mouth, and I Must Scream is a well-crafted reimagining of a rather dour story. AM, who is actually voiced by Ellison, is a supercomputer created by America, Russia, and China which gained sentience and destroyed all life on Earth, killing everyone, save for five unfortunate souls.
AM, being particularly cruel, made these people invincible and tortured them for 109 years before putting them into a terrifying game. Placing each person in their own scenario that calls upon their distinctive failings, AM is a haunting vision of what the state of the world could turn out to be.