Were you planning on keeping it more traditional psychological based horror a la Silent Hill 2 or were you considering branching out into more esoteric styles on occasion?
Something that came to mind to me was like the occasional fourth wall breaking style found in games like Eternal Darkness and how there aren't many games that really utilise that these days. I've always been fascinated by the idea of breaking down that boundary occasionally to generate fear into the player, coaxing them into thinking that something terrible is happening. Whether it be losing video near an enemy and hearing horrible sounds of your character dying or an actual technical fault (BSOD) being fabricated only to jarringly be brought back into the game. Even if it's something minor as well like losing control of your character, just that idea of forcing the player to step outset of that comfort zone where they know it's just a game and they can quit at any time has been fascinating to me.
Although I can totally get why you wouldn't consider a style like that however as it is something that is surely difficult to get right, considering you would be tampering with a players interaction with the actual game which in turn could lead to some misconceptions or frustration on their end.
This is just one example of a different style of horror though, so if there is anything else you had in mind to be utilsed in 'Neverending Nightmares' I'd be interested to hear it
(Assuming you'd want to disclose that information anyway, I know there needs to be some surprises left under wraps hahaha
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