Austrian Michael Haneke probably knows more about psychology and psychic violence than any other film director. 'Funny Games' was nominated in Cannes for a very good reason: This movie goes beyond the viewer's 'defences'.
The story itself is seems quite plain: A family on vacation at a pittoresque mountain river/lake meet two very polite young men, Paul and Peter. But from that point the absolute horror begins to develop. No matter how hard the family tries to percieve a motive behind the two men's torturous behaviour, they simply cannot understand it, because Paul and Peter are bright and intelligent. Moreover, they understand the family's situation much better, but they're not affected the slightest about it. Instead, they carry on with their polite facade. At one point the mother asks the two men why they're being so cruel. Their reply comes quickly: 'Why not'?
Actually, there is very little on-scrren violence, but you sense the pain, horror and frustration so much stronger than in ordinary violent films because Haneke succeeds in the difficult task of portraying psychical violence.
'Funny Games' has been compared to 'A Clockwork Orange', but Haneke, in contrast to Kubrick, operates with a fully realistic setting and terribly realistic characters, which makes the helplessness and horror much more relevant(!!!)