The "pink horses" are indeed related to that monster; they're in the dead zone, and each creature focuses on the wounds of whoever is there, like the monster in Wound 1. It represents Nick's pregnant wife. Joe will return in Wound 6. In principle, it's the last game and will end Alma's story arc, but before that, the remakes of Wound 3 and 4 are in development. Thanks for playing it, mister +__°