Only if they stay true to how shitty a format VHS was and how it would degrade with each use. Given enough plays any game would become Silent Hill.
But the thing with VHS is that basically every single viewing degrades the quality. Which is why I sort of love the format because it's just got a certain feel and in some ways alters the mis-en-scene of a film. Of course, enough viewings and every movie becomes a horror film full of distorted, blurry, blobs warbling at each-other in a static-filled nightmare dreamscape.
Which is awesome.
But as for the Xbox One, eh. I didn't see the unveiling but the PS4 unveiling was probably second in fuckiness only to the disastrous PS3 unveiling. Neither of the next gen consoles are filling me with any particular excitement, confidence, or optimism. It seems less like a choice of which console seems the best, and more of which one sucks the least.