Im unsure if anyone has mentioned "Die by the Sword" in these 22 pages, one of my alltime top 5 favorite game.
But thats probably the most similar game to Severance.
It came out before Severance in 1998, its very brutal and got this raw feeling throughout the game.
Great atmosphere like in Severance, you can cut limbs as much as you want, and pick em up and use em as weapons.
If the enemy loses a limb for example a leg, they will hop around on the other til theyre dead, head cut off means instant kill ofc.
You can also cut of 1 of thier hands/arms, or both. For example thier shield arm or thier weapon arm. If you are lucky you cut off both arms and they cant do any damage =)
Great music, Menus, Atmosphere, gore.
Oh yeah, that games has THE best training level ever created. With the awesome voice of Michael York (austin powers) http://www.imdb.com/name/nm0001868/
"Reckless fool!, not all situations call for the sword"
Die By The Sword, Treyarch 1998
Found a video on the gore http://www.youtube.com/watch?v=CilbwmUb_KU
Video from the Expansion showing intro, menus and arena http://www.youtube.com/watch?v=41UyXgofO3o