It's Alan Wake in American Nightmare!
American Nightmare is an episode written by Alan Wake for the bizarre TV show — Night Springs, which also stars Alan Wake as himself and as Mr. Scratch, his doppelganger.
The game takes place in a desert somewhere in Arizona, a plain wide area is a better setting rather than the hazy woods of Bright Falls in my opinion. I also think this is an experimental take by the developers tweaking certain gameplay elements for a feedback to make things better for the upcoming sequel.
Since this is a spin-off and originally a XBLA game — campaign is short and only has three locations but enough for me since I really really love deserts at night. And with an arcade survival mode, my thirst for pointing flashlights and dodging axes can very well be fulfilled; Oh and also this mode has plenty of maps.