What happened to Survival Horror?

It's kind of crazy how survival horror started out so strong last gen with RE's remake, Resident Evil Code Veronica Silent Hill 2, Fatal Frame, Eternal Darkness, etc Then began a decline in quality and near the end we get the re-invented RE4.

I also think during the PS1 era, Sony took more risks with horror games since it helped set them apart from Nintendo's kid-friendly image. But once Capcom developed RE games for the Gamecube and Microsoft released the Xbox, Sony wasn't as exclusive as they thought they were.
 
I remember playing Code Veronica on my Dreamcast. it makes me all fuzzy inside thinking about how amazing it was playing RE on a next gen console 8) 8) 8)

Ahhh memoriessss
 

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