I've played Beyond Two Souls twice and Heavy Rain literally tens of times. The latter is one of my favorite games ever.
I've also watched Indigo Prophecy/Fahrenheit on YouTube and that was also really good.
No, it's just a word that refers to the last out of two previously mentioned nouns.
Like, if you have two things, A and B and you wanna refer to them in your next sentence, you refer to thing A as the former and thing B as the latter.