One that does it well, Corpse Party.
As was mentioned by others, just having an endless parade of grimness and darkness gets tiring after a while, Corpse Party, for better or worse, knows how to avoid that. It doesn't just set up the characters to be killed with little thought or reason, instead, it likes to sprinkle all these nice heartwarming moments through the game that make you care about the characters and then it thrusts a knife into your gut and twists it around when it kills one of them. The best example is the sequel(I'd more call it an expansion pack though) Book of Shadows, which shows you a lot more of the characters that weren't touched on much in the original game and make it so you now get to know these other characters that died so that their deaths have a deeper impact on you. Most horror just tries to be scary, Corpse Part is actually horrifying.
As for bad... Hhm.... Advent Rising.
One of the things the game does is introduce you to two characters that are close to the main character, his fiance and his brother, you barely get to know these two (The fiance especially) before you get this scene where you have to choose to save one or the other. For one, you barely know the two because this choice happens right at the start of the game, and for another, it does bugger all. Halfway through the game, the person you save is killed off unceremoniously and with no character development along the way (Even worse is if you saved his fiance because they have a romance build between him and another woman even before she would die) and the person you don't save does have more of a role but it only comes up at the very end of the game (And this is one long slog of a game). The entire game also thinks it's grander and smarter than it actually is. Things like the fate of the universe and such just come off as hollow and pretentious bull. And that's the main problem with the game, it thinks it's more than it is.
As was mentioned by others, just having an endless parade of grimness and darkness gets tiring after a while, Corpse Party, for better or worse, knows how to avoid that. It doesn't just set up the characters to be killed with little thought or reason, instead, it likes to sprinkle all these nice heartwarming moments through the game that make you care about the characters and then it thrusts a knife into your gut and twists it around when it kills one of them. The best example is the sequel(I'd more call it an expansion pack though) Book of Shadows, which shows you a lot more of the characters that weren't touched on much in the original game and make it so you now get to know these other characters that died so that their deaths have a deeper impact on you. Most horror just tries to be scary, Corpse Part is actually horrifying.
As for bad... Hhm.... Advent Rising.
One of the things the game does is introduce you to two characters that are close to the main character, his fiance and his brother, you barely get to know these two (The fiance especially) before you get this scene where you have to choose to save one or the other. For one, you barely know the two because this choice happens right at the start of the game, and for another, it does bugger all. Halfway through the game, the person you save is killed off unceremoniously and with no character development along the way (Even worse is if you saved his fiance because they have a romance build between him and another woman even before she would die) and the person you don't save does have more of a role but it only comes up at the very end of the game (And this is one long slog of a game). The entire game also thinks it's grander and smarter than it actually is. Things like the fate of the universe and such just come off as hollow and pretentious bull. And that's the main problem with the game, it thinks it's more than it is.