Hey guys. I was one of the people responsible for carrying out this study. It was not published academically, and some of you are right in saying the sample size would need to be bigger, but certainly not the 100s that people are suggesting. Read this month's OXM (360 Magazine UK) for a full feature on the study.
The news report does not mention the method. You'd be interested to see how we came to our conclusions. We used biometrics, rather than just surveys and questionnaires. We believe our approach is far more accurate at determining what people are *really* feeling, rather than simply what they claim they are feeling. We monitor players' biological responses to see exactly what they're feeling at each individual point.
Please also remember that the trial was for 360 games only, and we included Dead Space 2 instead of the original because the study was timed to coincide with its release (for a specific purpose). I hear Amnesia is super scary.
It's also worth noting that while you expert gamers may be nonchalant about the scares in these games, our sample included much more everyday, normal gamers. Condemned fell short because players got lost on the map, or because of usability issues.
If you have any questions, please feel free to ask away