While the Dead Space franchise might be set in a horror environment Dead Space 3 is not a horror game. For that matter Dead Space 2 only qualifies as a horror title, at least in my opinion, by the undead skin of a necromorph's teeth.

After reading through the comments here, however, I have to say that I'll be disappointed if Dead Space 3's developers didn't actually bother to make real difficulty settings. It gets old seeing developers using artificial difficulty in "AAA" games. Runic did the same thing with Torchlight 2, but Torchlight 2 only costs $20. When they do more damage and you take less damage that just makes the game harder to stand to play, not harder to play.