I actually liked this one. I was a little annoyed at all the body horror at the beginning-- it was so gratuitious that I started to suspect it wasn't going anywhere. I'm glad I stuck it out though, because it ended up actually having a story behind the gore, unlike 99% of the crap that passes for horror these days.
The video game metaphor worked for me, especially the glitchyness, which was occasionally used in a clever way to give us false starts. I didn't care for the overuse of flashing, and especially the pixel moire pattern, which wasn't really creepy, just painful on the eyes.
Overall, it may not have been subtle, but it had a nice slow buildup and a psychological narrative with an internally-consistent theme. Good horror starts with WTF and ends with you feeling like you understand now. Without that hook for the curious mind, there's no real reason to subject yourself to it. So many modern horror series forget or willfully ignore that principle. This pixelly Indie effort at least made the effort, and mostly delivered on it. I'll take that over another disappointing sequel that misses the point any day.