The gameplay is pretty good and the atmosphere can be pretty scary at times. It doesn't quite push itself into the complete terror that Fatal Frame 2 does but it has its moments.
However, there is some unnecessary backtracking and padding and the story isn't all too interesting. The only reason I can see myself coming back to this is if I want to do a full series playthrough at some point or if I want to tackle the battle mode some more, which is pretty damn fun.