SH2's plot twist, although maybe more predictable and overplayed, had a real weight into the story and the character (of James), while SM's had a weight on the player and the player alone.
Cheryl is not being "tricked" by it, only the player is; only the player, thinks Harry is on that couch, and only the player is therefore affected by it.
So the very nature of this twist, was merely to shock players, and not add something to the character development; this is totally ok, from a narrative point of view, but it also drastically loses strength after the credits rolled (and since it's a big part of the emotional impact of the game's story, it's a pretty big deal).
SH2's twist was a piece of the puzzle, that shed a different light on the whole story, but was also an element of change for James himself, and that connected James with the player in a sort of "bond" in discovering the truth while, at the same time, the opposite effect is had in SM, casting out the player as a third party to the whole thing, like the only one "who wasn't in on the secret".
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Another factor is the elegance with which both titles chose to tell their tale.
I think both SM and SH2 portrays stories that are surely not groundbreaking nor incredible BUT, while SH2 elegantly makes use of the medium, to unfold the events and all the underlying elements (leaving only what's strictly necessary to words) with subtle and abstract symbols (strong symbols, because that's the horror nature of the game); SM is incredibly more clumsy and loud (as in: obvious) resulting almost obnoxious, it doesn't often manage to integrate some of those symbols well, to the point that it has to reduce most of them, to a methodical game mechanic (Poltergeists?).
That's the worst offender, i think: neither game presents a story that shatters your mind, but SH2 is, again, able to elegantly juggle with visual cues and symbols (it falls short in a few places, but hey it's still gold for the videogames' landscape) while SM tries to follow suit awkwardly, but it's like it has read a bullet-points manual of how a SH games should be, and tried to go along with it.
And the exemplification of this, comes from the profiling system itself:
SH2 is constantly profiling you as much (if not more) as SM, but NEVER tells you that.
If you don't heal, if you leave Maria behind, if you examine Mary's letter/photo too many times, if you listen to Mary's whole monologue, etc. are all factors that are going to change the game's ending and therefore, the profile the game has extrapolated from "you".
SM on the other hand is, again, very on the nose and obvious about its intentions, taking more or less meaningful choices you make and giving you correspondent outcomes; everything is transformed in a defined "game mechanic" and is presented to you as such (not only in form of marketing, i mean in the game itself).
This makes everything that more gimmicky and, in the end, pointless (if i know you're profiling me, i'm not gonna act natural-- as a general rule of thumb).
In a nut shell, SH2 and SM both start from a close point, but one is able to leap through quite elegantly, while the other constantly stumbles on its course, to get to a similar ending point.
On the gameplay side, the comparison is obviously not drawn to SH2 (they go for very different designs, and SH2 wasn't particularly great, on that front).
I liked the basic idea in here, too.. i always thought that the combat in SH games (especially the heavily story-driven ones, like SH2) was somewhat tacked on or forced in, cause "that's the Survival Horror formula.period."; so the idea of SM was pretty cool as a basic principle, to me.
Problem is, again, execution-- aside from a few things (the flashlight is awesome, slowly opening doors is awesome -if pointless- and a few other moments were awesome) the utterly rigid structure, comes off as incredibly underwhelming.
It's IMPOSSIBLE to have any tension when you know for a fact that in exploration mode NOTHING can happen to you-- while it's a turn off, when in your 3rd chase, you understand that those segments are nothing more than a methodically predictable simple mechanic, with little to no variables.
Again, the lack of elegance in game design is what destroyed the potential this game had.
But at first, i was willing to close an eye on it, because after all it was a rather unique system and it had that sparkle that could've become something really great.. that is, until i fucking bought Penumbra on Steam.
Frictional Games was basically what made me reconsider SM in a big way.. here's the same identical principle, done (for the most part) right, here's big chunks of exploration with unparalleled levels of tension, here's (basically) relentless foes that you have to escape and hide from, without it being a fucking methodical.. gimmick (excuse the limited vocabulary).