Games like Penguin Colony
Games like Penguin Colony include DREDGE, Still Wakes the Deep, Firewatch, Mouthwashing, and Amnesia: A Machine For Pigs. We matched them by the tags players give Penguin Colony on Steam (Lovecraftian, Walking Simulator, Exploration, Psychological Horror, and Retro): closest matches first, and among equally close ones the better-known games.

DREDGE
Shared: Lovecraftian · Exploration · Psychological Horror

Still Wakes the Deep
Shared: Lovecraftian · Psychological Horror · Walking Simulator

Firewatch
Shared: Walking Simulator · Exploration · Singleplayer

Mouthwashing
Shared: Psychological Horror · Retro · Walking Simulator

Amnesia: A Machine For Pigs
Shared: Walking Simulator · Psychological Horror · Exploration

SOMA
Shared: Psychological Horror · Exploration · Horror

What Remains of Edith Finch
Shared: Walking Simulator · Exploration · Singleplayer

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

DEATH STRANDING DIRECTOR'S CUT
Shared: Walking Simulator · Open World · Exploration

Fears to Fathom - Ironbark Lookout
Shared: Psychological Horror · Exploration · Narrative

Crimson Desert Enhanced
Shared: Exploration · Singleplayer · Open World

Fallout 4
Shared: Exploration · Singleplayer · Open World

Fears to Fathom - Norwood Hitchhike
Shared: Psychological Horror · Retro · Walking Simulator

No one lives under the lighthouse Director's cut
Shared: Lovecraftian · Psychological Horror · Retro

Sonic Frontiers
Shared: Exploration · Open World · Singleplayer

Rise of the Tomb Raider™
Shared: Exploration · Singleplayer · Open World

Outer Wilds
Shared: Exploration · Singleplayer · Open World

Gone Home
Shared: Walking Simulator · Exploration · Narrative

Marvel’s Spider-Man Remastered
Shared: Open World · Singleplayer · Exploration

Scanner Sombre
Shared: Walking Simulator · Exploration · Psychological Horror

Valley
Shared: Exploration · Singleplayer · Walking Simulator

Escape the Backrooms
Shared: Psychological Horror · Exploration · Horror

Hogwarts Legacy
Shared: Singleplayer · Exploration · Open World

Slime Rancher
Shared: Exploration · Singleplayer · Open World