Teddy is more than just a light source; he's a vital source of information. Pay close attention to his dialogue and his physical reactions. When the Shadow Figure is nearby, Teddy will often whimper, his voice will become more strained, and his light might flicker or pulse more intensely. These are crucial early warning signs that you need to find cover immediately.
Conversely, when you are on the right path or near an important interactive object, Teddy might offer encouraging words or his light might shine more steadily in a particular direction. He also provides narrative context and emotional support, helping you interpret the unsettling events. Listening carefully to Teddy's cues can save you from danger and guide you through confusing sections of the game.