This is Outlast, a first-person, combat-free horror game about investigating an asylum. It's coming to PC (Steam) at the end of the winter by new development studio Red Barrels. We saw the game at PAX East last weekend.
Supposedly one of the people who tried the game at PAX was so freaked out that he nearly knocked the booth down. I played it and managed to keep my composure. It was creepy nonetheless.
Check the game's official site for more details. Thank you to Philippe Morin, president and co-founder of Red Barrels for showing us the game. And thanks to our favourite science consultants at Thwacke for tipping us off to the game. They're advising development and helped Red Barrels learn more about crazy people and the history of asylums—hopefully to make this game all the scarier.