Just finished the game on hard mode and I liked it. Majora's Mask is my all-time favorite game and making a horror game on that greatly interests me. I kind of went through the entire game without getting a lantern as I've never died, but I guess it's just not needed at all. I think other characters would be more fitting than the Happy Mask Salesman as the horror enemy. For example, you could use the horrified face of a transformation mask when you put it on and place it over Darmani's ghost face or something and have that chase you would be a better and more horrifying fit. Still, being chased by a Weeping Angel type of enemy is always unnerving when it's combined with the narrow hallways like the inn. Also, I would suggest making the Happy Mask Salesman have a smaller detection of when you stop observing it as he just moves and stops constantly when he's at the edge of your field of view, or make the fov smaller. I'm really looking forward to seeing what the final game would look like.