What exactly is Madhouse Mode? Just like a very hard mode or something?
Madhouse Mode is the game's hardest difficulty, but it does a number of differences.
Here's how I understand it at this point:
Casual (which I guess is the difficulty whoever the guy is that most GAF'ers are watching on stream):
-Frequent Checkpoints.
-High Regenerating Health (regenerates about a third to a half of your health back, plus regenerates a lot faster).
-Much slower enemies with less frequent attacks and dumber AI
-Less damage from enemy attacks
-Can save at Cassette Recorders whenever you want.
Normal:
-Moderate Checkpoints.
-Moderate Regenerating Health (regenerates a fifth to a fourth of your health back, but a bigger pause in regeneration and much slower than on Casual).
-Normal Speed enemies with Normal attacks (moves over twice as fast than Casual I hear) with more intelligent tracking AI.
-Normal damage from enemy attacks.
-Can save at Cassette Recorders whenever you want.
Madhouse:
-No Checkpoints.
-No Regenerating Health.
-Faster Enemies with Special Attacks (may be able to do more deadly moves) with much smarter AI that are far harder to lose.
-Higher damage from enemy attacks.
-Cassette Recorders can only be saved at if you find a cassette tape, a new item exclusive to Madhouse which takes up inventory space and there's finite of. Basically Typewriters and Ink Ribbons from past games.
-Unconfirmed, but may be some special traps, enemies, and elements you need to survive as well not in other difficulties.