This reminds me of "The Song That Never Ends". Wow, how have I never made that comparison before? We've had recursive stuff like this all the time. This was still a wonderfully unique cartoon. I thought it would just be the same image. I should've recognized that "Infinity" sign at first.
The mood is set up perfectly. Yeah, it's still that time of year. This almost plays out like a Creepypasta. It did manage to be genuinely haunting. An actual game of this would be boring.