First off I would say this game's gunplay is a lot better than Classic Resident Evil games. You have two different aiming mode, one is a typical Survival horror aiming but this time you can move, the second is a full 3D aiming which allows you to aim at specific places. This alone makes the gameplay better than Resident Evil (In terms of shooting).
Moving and other stuff is the same as Resident Evil, you have tank controls, fixed camera, and a lot of backtracking.
Now the bad thing is that the gameplay is very clunky, even for a 2001 game. You get keys but there are no real clear information on where to use them, so I just ended up using the keys on every door to see which one it opens. The good thing is that most keys are just used once and they are gone. A bad thing is that you don't automatically use the keys so if you have more than one you will have to go to your inventory and press "use" on both keys to see if either works. This becomes tedious very early on. If you ever played the very first Metal Gear on the MSX, it is very similar to using keycards in that game.
Another bad thing is that the enemies are extreme bullet sponges. Unlike Resident Evil, enemies in The New Nightmare does not react to your shots (for example they don't really move back and they don't fall down). This is a problem because if there is an enemy or enemies in front of you, you can't run past them and have to kill them. You will spend an entire clip on killing one of these creatures. There is really no strategy, you can't aim for the legs, shoot them, and then run when they are down. Also enemies to respawn so it is very frustrating when you clean a room of enemies, then come back later to find them back there but this time you are low on ammo.
Another thing is the game isn't really scary (although there are some nice little jump moments). The reason is that these creatures aren't scary, they are inspired by Native American folklore and H.P. Lovecraft.
Anyways, this game is just "ok."
7/10