With all those videos that make Kinect look like the Xbox 360 is trying to shamelessly cash in on the Wii market (just a few years too late), it’s easy to forget all the interesting ways the system might be implemented in other games. Case in point, the horror genre- how great would it be to have a game that tries to scare you and reacts to your movements and jumps to better do so?

Sega today announced that they have a title that’s going to try just that- Rise of Nightmares, a game that promises to scare the pants off of you…. possibly literally.

Rise of Nightmares offers a spine-tingling horror experience which uses the innovative new controls of Kinect to give players new encounters filled with fearful anticipation and terror. Using their whole body the player will experience fear and tension as never before in this first person horror adventure.

The idea of a game that responds to your fear in such a way is certainly intriguing, but let’s see how deep the game gets. It seems like they could do all kinds of amazing things with a game like this. Gamer starts to get too comfortable? Jump scare time! Facial recognition showing a horrified gamer? Keep cranking the horror till you crack the poor person’s mind!

There’s no more details on Rise of Nightmares than this synopsis and a brief trailer that was shown at the Tokyo Game Show but the title will be hitting sometime in 2011 exclusively for the Xbox 360 and Kinect.

This is on top of a game that Microsoft announced at the TGS called Haunt. Parappa the Rapper creator Masaya Matsuura is behind the project, which is being described as a haunted house game with “cute” graphics.

Good to see more developers trying to utilize Kinect in these ways, because we’ve already got all the Wii Sports and Wii Fit ripoffs we could ever use.