Games like Nightwatch
Games like Nightwatch include Firewatch, What Remains of Edith Finch, Amnesia: A Machine For Pigs, Outer Wilds, and Layers of Fear (2016). We matched them by the tags players give Nightwatch on Steam (Adventure, Atmospheric, Walking Simulator, Horror, and Story Rich): closest matches first, and among equally close ones the better-known games.

Firewatch
Shared: Adventure · Atmospheric · Walking Simulator

What Remains of Edith Finch
Shared: Atmospheric · Walking Simulator · Story Rich

Amnesia: A Machine For Pigs
Shared: Walking Simulator · Horror · Atmospheric

Outer Wilds
Shared: Adventure · Story Rich · Mystery

Layers of Fear (2016)
Shared: Atmospheric · Horror · Walking Simulator

Gone Home
Shared: Walking Simulator · Atmospheric · Story Rich

The Beginner's Guide
Shared: Walking Simulator · Atmospheric · Story Rich

The Vanishing of Ethan Carter
Shared: Atmospheric · Walking Simulator · Mystery

CARIMARA: Beneath the forlorn limbs
Shared: Adventure · Story Rich · Mystery

SOMA
Shared: Atmospheric · Horror · Story Rich

INFRA
Shared: Atmospheric · Adventure · Walking Simulator

The Park®
Shared: Horror · Walking Simulator · Atmospheric

Mouthwashing
Shared: Atmospheric · Horror · Story Rich

The Stanley Parable
Shared: Walking Simulator · Adventure · First-Person

MiSide
Shared: Story Rich · Horror · Atmospheric

Oxenfree
Shared: Atmospheric · Story Rich · Adventure

The Suicide of Rachel Foster
Shared: Walking Simulator · Atmospheric · Adventure

Little Nightmares
Shared: Atmospheric · Adventure · Horror

The Room
Shared: Atmospheric · Adventure · Mystery

Scanner Sombre
Shared: Walking Simulator · Atmospheric · Adventure

No, I'm not a Human
Shared: Horror · Atmospheric · Story Rich

DEATH STRANDING DIRECTOR'S CUT
Shared: Walking Simulator · Atmospheric · Story Rich

Poppy Playtime
Shared: Horror · First-Person · Singleplayer

Return of the Obra Dinn
Shared: Atmospheric · Mystery · Story Rich