It's survival-horror status can be debated, but it's damn scary, and damn fun. In my opinion its the best s-h game yet.
These are the kinds of scares that Dead Space can deliver. Sure, it has the classic popping out behind walls and windows, but it's more than that. The environment is a gorgeous, harsh mistress that can rend you limb from limb even easier than the zombified crew of the USG Ishimura ever could. The game is scary. It does have a lot of action, but isn't that what you want?
The graphics in this game are astounding. When I purchased the game I had the assumption that since it's on a dark space ship, I would be treated to the usual black and gray color scheme. The game basically hit me over the head and told me to stop being stupid, it's smarter than that. Even though the game takes place on a space ship, the different areas can be very unique from one another.
Every element comes together to create a fantastic, real experience. As said, there is no pause when navigating menus or accessing a store. It all lends to an atmosphere that is eager to point out that just like someone on a derelict spaceship, there is nothing to help you. You're vulnerable and outnumbered.
You aren't a space marine or a super soldier, you're an engineer. You don't have a shotgun, you don't have unlimited ammunition. You can buy more powerful weapons from the in-game stores, but ammo can become very scarce, and you will have to manage. Let your creativity shine, do whatever it takes to kill them before they kill you. You have kinesis and a stasis unit to take out your enemy. Although it's not as effective as a gun, freezing and beating a necromorph to death is very satisfactory.
Don't let this scare you though, the game doesn't set out to eff with your mind or make it impossible to proceed.
You can upgrade your guns and equipment via power nodes that can be inserted into empty circuits. You can upgrade such things as capacity, power, and reload for guns, as well as health and ammo for your suit, which you can upgrade with schematics found throughout the Ishimura.
The story is fantastic as well, it sets up a universe where you really do get the sense that the situation is bigger than you, and this fits well into the rest of the game.
It's epic, it's scary, it's gory, it's fun. This game definitely deserves your attention. I implore you not to let this game slip through your mind in the midst of the Fall storm.