I recently purchased a PS2 and with it a copy of Silent Hill 2. I haven't really read any of the reviews and bought it solely because of the original Silent Hill, which is a classic.
Upon popping the disc in my system, I was immediately astonished by the weird, creepy and distinctive atmosphere of the beginning. I knew at that moment, that this wasn't like any other "horror" game I have ever played. This game is impressive on every level. The visuals and sound are so polished and atmospheric, that the experience is way more immersive than even today's standards of graphics. The action is well balanced with puzzles and, luckily, Silent Hill 2 didn't forget the running away aspect of survival-horror games (as many new games do forget). But the real knock-out is the massive, deep and emotional story line, that keeps you guessing and never really let's you in on what's real, and what's not. All of these features add up to what is Silent Hill 2, the scariest game I have ever played.
In all, Silent Hill 2's creepy, yet beautiful visuals, haunting story and terrifying sounds are definitive proof that video games can be art, and darn fine art at that.