It's not too bad, but it's not great either. I think it's most likely all of the shitty screamers on Newgrounds were what had me on edge as I watched, but other than that it wasn't really scary or even interesting. The game-to-movie concept just didn't do it for me; perhaps allowing the viewer to see what was happening to the real-world player would have made it interesting. As it is, I would have rather played an actual game.
The graphics and sound are modest, and the Earthbound reference is lame. The stereotypical creepy things that tend to happen in creepypastas or dramatic RPG Maker games are all there, but fail to immerse the viewer.
Honestly I think the concept was just bad from the beginning.