Having recently completed Silent Hill 4 for the first time, but having completed the other 3 games years ago, you don't need to have completed the first 3 to understand the story of the game at all.
However - not only is the 4th the weakest game in the series, but it also contains some knowing nudges and winks to the previous games that will go right over your head if you don't play them first. This isn't a bad thing nor will it impede on your experience, but playing the first 3 beforehand will enrich your SH4 experience - particularly the first as there are numerous references and allusions to the antagonist of the first game and her mother.
VERY MINOR, NON-STORY (GAMEPLAY)SPOILERS AHEAD
In terms of difficulty, Silent Hill 4 can lull you into a false sense of security in that the 'room' is a central hub and safe haven for about 3/4 of the game. However, after that it becomes an increasingly hostile and dangerous place, and the difficulty curves considerably. If you play it on difficult mode and you're a fairly experienced gamer then the main bulk of the game shouldn't prove very problematic, but you WILL notice a sudden spike in considerable difficulty once the room begins to turn against you and suddenly you have nowhere safe to go, and you will need to be going back to the room a number of times after it starts getting hostile. You can pick up items to ward you against the dangerous nature of the room but not only are these fairly sparse, but you also have to use them very quickly and in quite specific areas, before which your health will be draining very quickly.
I would recommend playing it through on normal difficulty if you've not completed any of the series beforehand, as I believe the puzzles in the game are also more cryptic and difficult on hard mode, and given the above mention about the room itself, you might struggle all told.
I'd also recommend playing the first 3 beforehand, not as a necessity but because they are strong, and generally better games. In terms of story Silent Hill 4 is one of the more interesting and strongest of the series, but in terms of gameplay etc. it's more unique (And in some ways works better than the first 3) but is generally accepted as a slight dip in quality.
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