This is great news, Fatal Frame is probably the third biggest survival horror franchise around, after RE and Silent Hill.

Fatal Frame is an ideal game for the Wii.
The wiimote would control the camera obscura used to exorcise ghosts in the game and the nunchuck for movement.
I am am really happy with Jap developers showing balls in bringing some of their games to the wii. Les hope Activision, EA, Take 2, Vivendi choose to follow this lead.

Resident Evil is a better franchise than Fatal Frame, you should know that.

 Hopefully O_O

I can see this game bombing on the Wii, it just isn't a good fit for the Wii's casual userbase IMO.

Even though Resident Evil 4 is the best selling 3rd party game on the Wii this year, has more than doubled Capcom's expected sales, and Capcom specifically cited RE4 Wii edition for rising profits and stock values in their latest earnings reports?

http://www.gamasutra.com/php-bin/news_index.php?story=14975

Because that's the only game that's even remotely similar to FF, and it's done extremely well.