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UPDATE: The 3DS game is real and is called Shinrei Camera. Pulled from 1Up:

The 3DS title will come backed with an "AR notebook," a book which seems normal and harmless enough to the naked eye. Point your 3DS's camera at it in-game, though, and it'll reveal all sorts of things lurking in the pages -- hidden messages, clues to your past, even a hungry demon or two.

"I wasn't all that interested in AR to start with," Kikuchi told Famitsu magazine in this week's issue, "but as I explored the possibilities, I really started to get into it. I thought we could really do something with it if we combined our traditional strengths in horror and adventure with the AR technology. It was a big challenge, but we went through with it, and the result is this style of horror that does away with the boundaries between the natural and the supernatural."

Shinrei Camera will feature three game modes: a story-driven adventure set in the same world as the rest of the Fatal Frame series; a minigame collection that uses the AR notebook; and a "ghost camera" mode that allows you to snap supernatural pictures of yourself and your friends. "One big theme during development was how to incorporate AR into an adventure game," Kikuchi explained. "I think we succeeded in achieving that, because the story uses AR consistently right up to the ending. Compared to previous Fatal Frame titles, though, there isn't as much actual time spent with the game itself -- that's because you'll also be spending time turning pages on the AR notebook and looking around in real life instead of moving your character around within the game."

The rumor that looks like it started with a very trusted industry news magazine, Famitsu, says that a Fatal Frame title is in production for the 3DS. The title also supposedly uses the augmented reality (AR) function in some capacity. It is not known weather this is a remake or a port of any of the four titles out already, or a completely new game. The image we provided here has Fatal Frame 4: Mask of the Lunar Eclipse content for mock-up purposes only. Try it on Wii using the fan translation patch, it's a really spooky game to be playing at night.

On another note, a couple days ago I was thinking how PERFECT the Wii U controller would be for a Fatal Frame game, with the view through the camera being in the motion controlled hand-unit itself... and I discovered one neat little gem...

A Fatal Frame game is confirmed to be in production for Wii or Wii U! The screenshots look like a re-make of number 2 The Crimson Butterfly (PS2). For screenshots visit Fatal Frame Wikia. The game has a project name of Fatal Frame 2011, but this year is almost up, and Tecmo says they would "like to have launch titles for Nintendo's Wii 2 successor platform", the Wii U. This is leading many people to believe its possible the game could be one of these launch titles they would like to put out.

However, because the fourth installment has not been released outside of Japan, it may be possible that either one or both of these games receive the same fatal fate as well... but who knows!