I think it's safe to to say the game industry as a whole has forgotten a lot of the key design elements of survival horror; isolation, vulnerability, limited resources, overwhelming opposition and foreboding atmosphere. Granted you don't need all these things to make a survival horror game, but the sad truth is a lot of franchises have abandoned most (if not all) of these details in lieu of guns and multiplayer. Firearms, particularly the military grade stuff, is the biggest offender and frankly unnecessary when you consider well received titles such as Fatal Frame use a camera instead.
The point of mentioning all this is to show that there were, and still are, ways to revitalize the genre. I've even suggested a few ideas in another post on this blog. As it stands now (ubiquitous zombies aside) the closest I've gotten to a survival horror experience this generation of consoles was by playing Dead Space on the hardest setting. Alas such an experience was only a nostalgic taste of what the genre used to offer. It seems that survival horror is perishing much the same as 4X games, non-portable TRPGs and adventure games. Don't abandon all hope though for as the famous horror writer H.P. Lovecraft once quoted:
That is not dead which can eternal lie, And with strange aeons even death may die.