The problem wasn't Nintendo, it's Nintendo Of America. Nintendo co-owns the franchise, so they want to release it the most possible. But Nintendo Of America thought it woulkdn't be profitable to localized the game because they thought that the fan base won't worth it, Most Nintendo games are easy to localise because they aren't text heavy like fatal Frames, so more profit for them. But it's nothing if we compare with Final Fantasy games that are of more large scale and Square-Enix is making a lot of money by localising their Jpanese games. If the games are good, people will buy them. If the games are great you will sell more games. A good localisation is a good investment. Fatal Frame is a celebrated survival-horror serie, it will catch the attention of the critics and will convince more players to try it at least.