X-com: Yeah I know, there's a lot of games that take place in one room, Snake for example. Action games work in minimal spaces sometimes but imagine a Telltale game in one room (or a booth for that matter) where you spend hours upon hours just talking like in Man From Earth or My Dinner With Andre that somebody mentioned above.
I haven't played Silent hill 4 but from what you described it sounds like a game version of The Cube which was a fucking awesome movie.
tinyE: LOVED THE CUBE! That was movie about the people trapped the mass of trapped rooms that kept moving around each other, right?
Yeah, pretty okay movie! The big reveal felt a big meh at first, but later it felt pretty awesome. The movie was based on the made-for-tv movie THE CUBE (1969) by Jim Henson (yes, him) which can be downloaded here: (the .ogv version is least crappy. We're talking VHS rip here...)
https://archive.org/download/TheCube-JimHenson-1969_343 (while the movie officially is about the TV medium, due to contractual obligations, there is some clear inspiration from the VR novel World on a Wire: At one point, a character talk about being "projected", which is the novels term for being inside VR, and shooting yourself is suggested as a mean to escape VR, a notion which also is seen in the game Superhot VR)
BTW the Cube is also the inspiration for the VR game Neverout.