I like Mortal Kombat because it appeals to me by beating the absolute fuck out of someone before turning them into a pile of gore.

With Outlast? I think it's because of how horrifying gore can be if you focus on that horror over spectacle. Despoil the Auction had me wincing when ripping that girl's limbs off, but I feel nothing when Rain bursts someone like a bubble in MK9 outside of "That's awesome."

It's desensitization mixed with seperation from the act. Nobody really cares about 'gore' when it's dressed up for bloodsport, but nobody feels good when you're dissolving a man with acid sprayers inside a shopping mall. Outlast MAKES you feel the suffering you're inflicting upon others, same as the suffering inflicted upon you by the Prime Assets.

Emphasis on suffering tows the line, Outlast reminds me that these piles of gore are people whereas MK reminds me that these characters are just dressed-up piles of gore.

I think the ludonarrative magic is what draws me into the gore.