For many, survival horror is the only proper horror game, but no modern game can accurately be called survival horror. So, for those players, no modern game can be a proper horror game.
The vocabulary we use to talk about horror games is inherently problematic because a single subgenre has become synonymous with the genre as a whole. “Survival horror” is widely seen as a synonym for “horror” in general, but the truth is that “survival horror” when used in this context is a very specific kind of horror game that really only existed in a very specific era of gaming.
There’s a lot of nostalgic baggage attached to the term “survival horror”. The two words speak to a distinct type of gameplay and atmosphere: tank controls, weak characters, poor combat, inventory management, fixed camera angels, obtuse puzzles, limited ammo, lots of loading screens, lots of running, journals that fill out the backstory, etc. This type of game was popular on the Playstation and Playstation 2 and was also the only kind of horror game that was readily accessible in mass market gaming. Since there were no alternatives, it was only natural to assume that survival horror was the only sort of horror game, and over time, this kind of thinking became entrenched in the fans of the genre.