This is soooo rad! Perfectly captures that PSX nostalgia. I loved the third-person fixed-camera angles-- even the tank controls were a nice touch. The music was superb and worked well at enhancing the already grim, disquieting atmosphere. I'd say this demo is very well put together and that bodes well for the finished project. Definitely 5 stars. Keep it up!
P.S. The only thing I'd add to the game is maybe a heartbeat/health bar in the inventory screen. Also, some of the interactable objects didn't respond the first couple of times I tried to touch them, as if their "hitboxes" were too small.