I wouldnt say its dead
You see,what alot of people overlook is,that Horror was always 99% stupid trash you can only watch ironically.
People just like to completely erase the terrible garbage that came out from their mind,if at the same time,some really good ones
were released.
Most of the films that are seen as classics nowadays were barely known when they were released,or seen as garabage.
And with the predictable plot,that isnt really a new problem,the genre always was cliche filled.
I know that this is propably is some mindless Hipster crap,but it usually seems like the less popular writers write the better films.
Nothing will happen,more stupid ones with some good ones between them will be released.
Even tho im legit concerned about the Found Footage Genre,with films like Unfriended and similair.
While films like Blair Witch Project,as much as I dislike it,took a lot of effort,Unfriended was shot in a day trough screen cap on Fire Fox and Skype.
It also makes me sad how people see Unfriended as a good film just because it has a good moral.
But that seems to be more of a problem with "everything has to be nice" and politicial correctness nowadays.
There are still alot of good modern Horror Films,someone just has to find them first.
Same goes for Videogames,there might be crappy Jumpscarefests like Emily Wants to Play,but there are still good ones coming out like Albino Lullaby and We Happy Few.