It had its moments but didn't keep up the intensity. Some of the scarier parts of deadspace are when you just sit back in a room and hear voices talking to you, or when the lights go out.
I was freaked out when the lights went out and thought the game was going to ratchet up the intensity but it didn't, instead it took the easy way out. It still maintained a pretty good tension throughout the game, but it lost its scare as soon as I got the PR. I beast the game with that thing.