At its E3 press conference, Tecmo announced that it has entered into a deal whereby DreamWorks will produce a film based on Tecmo's popular survival-horror game "Fatal Frame." The agreement, which is still being finalized, gives DreamWorks the exclusive option to the live-action production rights for Tecmo's "Fatal Frame." In March of 2002, Tecmo shipped "Fatal Frame" for the PlayStation2 computer entertainment system to critical acclaim and rave customer reviews.

Based on a true story, Fatal Frame (to be distributed in Europe by Wanadoo end 2002 titled "Project Zero"), a horror adventure game, leaves its victims breathless as they become immersed in a world full of supernatural spirits and sheer terror. Fatal Frame takes place in a dilapidated, haunted mansion and nearby surrounding area. Unlike other survival horror games which focus on heavy combat with traditional weapons such as handguns and shotguns, the unique twist in Fatal Frame is that the player is guided by Miko’s sixth sense and armed only with an antique camera. The designers focused heavily on developing a creepy, unsettling game atmosphere, complete with darkened hallways, sticky cobwebs, and rotting staircases where Miku sets out to solve the mystery of her brother's disappearance.