I'd say adding 3rd party support to what they have now is also needed

Yes please.

I feel like Fatal Frame and the release dates are more likely in a direct, but a Retro announcement is more suited for E3.

If FF localization was announced in tomorrow's direct, I would have a heart attack. I'm done expecting it though after the last one.

I agree, I'm not expecting any new game announcement in this Direct with E3 just a few months away.

As someone who's been with Operation Zero since the beginning, I'm starting to lose hope in Fatal Frame being localized, but if they do, that would win Nintendo massive points in my book, as it would signify them actually listening to gamer demand. At this point, they would win me back, at least temporarily, from that alone.

I feel like a FF announcement tomorrow would be perfect timing, given Zelda U's delay. It would show that they care about their core audience, like you said. It's just like how Bayonetta 2 was announced for Wii U out of the blue when Nintendo was getting accused of ignoring what gamers want. 

It feels too good to be true, though. At the same time, they kind of need it to fill out holiday gaps. Last year it wasn't really an issue due to Hyrule Warriors, Bayo 2, Smash and Captain Toad but with their marquee title for 2015 gone they should want as many titles for the holiday as possible (FF along with Devil's Third would fill necessary niches that their other titles don't).

I´m pretty much sure that FFV is going to be released on the west. But in 2015? idk, that would make sense since they already have the game, they can easily use it to fill some hole. But Nintendo doesnt makes sense too many times.

It would be an excellent pacifier, but for some reason Nintendo seems very reluctant to bring it over; perhaps its a little too risque for their family-friendly image in the US, or they're not confident in it reviewing well.

I don't think it has anything to do with their image (they did publish Bayonetta 2 and are publishing Devil's Third after all, both of which are way more graphic than Fatal Frame) or reviews (they've published quite a few games that review worse than any FF game). 

I think it's purely about sales. I'm not sure they think they would make a profit off of localizing it. But at that point, why even make the game in the first place? It's never sold fantastic even in Japan. In fact, it always sells better in the West, so why ignore its most successful region?

I'm pretty sure they're going to localize it eventually. Either a.) when they need to fill software droughts, b.) whenever the Hollywood adaptation is close to release, or c.) as one of Wii U's last titles before their next platform hits.

Or it's the fact that Fatal Frame gets very, very low sales.  Bayo was niche, but not even close to as niche as Fatal Frame.  Sometimes it just comes down to the numbers.

Sexualized content in Devil's Third and Bayonetta seems to feature grown women, the protag of Fatal Frame is a skimpily dressed teenager. Bit of a difference in image there.

As you point out though, the game did not sell gangbusters in Japan, and probably didn't recoup the cost of developing a HD title, so you'd think they'd bring it West and take what they can get, especially in light of their software droughts.

It's true value, however, is symbolic; localizing it would be a statement to gamers that Nintendo gives a crap about them.

Damned if I can figure out their reasoning...