Should Capcom

[Biohazard EXTREME]

Precisely.
And heck, even if the character development isn't richly there, the few conversations you have with Barry/Rebecca were just enough to make you care about them.
Another thing about RE is that you're never in contact with anyone. Like, there's no radio. So you're roaming the halls alone, no ammo, no healing, isolated with nothing but undead monsters. So when you do meet up with Barry, or Rebecca, or even Wesker in the residence, you can't help but go, "THANK GOD! Another human being!"

Dead Space was the other way around, the other members were always in contact with you by radio, or video. When something dangerous happens, and the guy goes, "Are you okay!? ... ... Good!" You don't get the feeling of isolation at all. Thus less scary.

From what I heard about the lack of scared in RE5, they were largely due to the fact that you always had Sheva there helping you out. I wouldn't know, but that's the word.

Sure, in Dead Space, you didn't have anyone following you around, but still.. The fact that you were always connected, and that they contacted you so damn often, practically guiding you by a leash through the levels, it eliminated that, "Oh s**t, I'm alone in a big space station where everyone's dead" feel.  

[Mr. Kennedy]

Ah man so true. I even felt better when you see Wesker fighting off (Bees? Or Spiders? It was one of those). As a kid for some reason I thought that was awesome. That he had to deal with them too. Added to the sense of threat within the mansion.

With Dead Space you are completely right. The radio contact vaguely reminded me of BioShock which wasn't very scary at all either.

As for RE5, I honestly did not go in expecting to be scared. At all. In any way. Sheva was there for some good co-op play. "Ah I got hit by a huge axe. Look I got a sexy partner to help me out."  

[Biohazard EXTREME]

Or in the Remake, when Wesker helps you fight Lisa. I couldn't help but think, "Man, am I glad he's got my back."
In strides. A little bit here, a little bit there. Then it's taken away. Or worse, he betrays you. But if that partner is there ALL the time, you're like, "Well, at least I'm not alone. So I'm not scared."

That's part of the reason why whenever I play RE0, for the majority of the game, I keep Rebecca and Billy separated. It helps a bit.

Although I couldn't get into Bioshock, I still found the demo to be more interesting than Dead Space. It at least had this unique 1950's style about it. There was something... Steam-punkish about it. And I like steam-punk.
Either way, Bioshock is not my type of game, but I still acknowledge that it had more personality than Dead Space did. The game itself, I mean. The main character had no personality, obviously.  

[Mr. Kennedy]

Very true. Perhaps the reason Outbreak wasn't scary either.

I'm pretty much the opposite. Tension is risen whenever I was seperated from my partner in RE0 or Outbreak. To you it's a good thing, but I didn't like it. So I usually stuck with my partners, too afraid of losing them. Am I a puss? surprised

Bioshock was amazing. Your right, FPS=No personality, but the story and enviroment kept my interested and it was great. The game was a blast.  

[Biohazard EXTREME]

Well, I thrive on terror. That's why I like to take Horror seriously, because it allows me to be immersed enough to believe it, and feel that dread in the pit of my stomach.
It's pretty ironic that they took all that time in Dead Space, to put an in-game hud, an in-game inventory system to keep the player immersed, but it didn't work.

See, I think people try to fix problems where there are none.
I mean, has anyone here really been put off by Resident Evil's inventory system? Yes, it takes you away from the game, but that never mattered to me, for some reason. Like, I'm in the heat of a boss fight, and I run out of ammo... I go to my inventory to switch weapons... But I never lost that sense of urgency, that sense of suspense like, "Holy s**t, this guy's gonna kill me!"
Even when in the inventory.

Again, back to the damn critics. They always find stuff to b***h about, even when it's uncalled for.

Well, to be honest, the biggest reason I separated my characters in RE0 was to get things done faster. I found things I could do that would be more efficient if they were separated and I do it that way.

I don't know why Outbreak wasn't scary... I just think because part of Resident Evil's scares were in the suspense. You walk down an empty hallway, is something around the corner? There might be, but it's that maybe maybe not that kept the suspense going.
In Outbreak, from what I recall, many of the enemies respawn, so even in a quiet empty hallway, you know something's gonna break in eventually.
Always, always keeping you on the run isn't good for scares either.
It was somewhat necessary in Outbreak to make sure people didn't slack off, because online other people are depending on you. But it did take away from the scares.  

[Mr. Kennedy]

I was immersed pretty well actually. I was constantly alert and ready for the enemies that crawled out of vents and such. Problem was that it got boring and I never got the scares I was looking for.

Nothing is wrong with the inventory system. It was however, welcome in RE5 seeing that it was an action game anyways.

Ah that's true about Outbreak. The game kept you on the edge, but never really terrified. And yup. You can bet the guy who left his character nice and cozy to go make a sandwich came back to see his friends abandonded him and he's surronded by zombies.  

[Biohazard EXTREME]

Well, I dunno... I mean, I was bored... If I was immersed, I figured I'd be interested.
Heck, even RE4 was immersive.
With Dead Space, it was like, "Okay, I'm putting the battery into the wall using the gravity gun thing..." Which.. What was wrong with just picking it up with his hands again?
Anyway, so I'm like, "Well, I'm picking up the battery so I can open more doors and explore more... But why do I care? I had a wife on this ship... No wonder she left me, I'm dull as a non-serrated plastic knife. Why am I doing this again? To turn on the turbine thingamajiggy... Oh look, a monster. I shot it... Like I did the last 5. Yawn."

Honestly. I don't even know why the game bored me as much as it did. But it bored me more than like... It bored me more than stocking up on magic by drawing it from enemies in FF8. At least when grinding in RPGs, I could pretty much just hold or mash the action button on the controller, while paying attention to something interesting.