Folklore, Horror Stories, And The Slender Man
Creepypasta, short viral horror stories that usually take the form of urban legends, have been around for roughly a decade, being passed around reddit and other forums. She notes that most of the time, videos are created by fans of a viral story after it's already become famous. NES Godzilla is not only one of the most well written video game related creepypastas out there, but it's also described as being one of if not the longest creepypasta ever written.
Reminded of my first encounter with the Skull Kid on top of Clock Tower, I pulled out my Ocarina (to which the game played the ding sound when you're supposed to play your Ocarina) and tried a song I hadn't played yet - the Happy Mask Salesman's own song and the song that had been playing on loop back in Day 4 - the Song of Healing.
Even though things like the Slenderman stabbing have perhaps caused the average person to view creepypastas in a negative light, the creepypasta community is still going strong. I don't advise looking at it unless you are 100% sure that you love horror pictures and movies and can handle this.
Within a month, the prisoners, telling each other about the nightmares from which they had all begun abruptly to awaken, discovered they shared striking similarities: first, processions of alligators and tortoises filed through a swamp crowded with faceless people and shrieking orchids; next, a shadow man, at whom they looked directly but could never quite see, would watch them in utter stillness from an empty house while invisible hands probed behind their eyes as they had to stand naked, legs locked in place, unable to run away.
It's an example of creepypasta, which are short stories found on the Internet that are basically designed to shock and startle the We Watch You Sleep reader. I've never personally played LSD: Dream Simulator, but the author has described that the creepypasta is in no way meant to degrade the original game, as he mentions his story is meant to be more violent than the actual game.