Mr. Suda himself also worked as a designer and writer for Fatal Frame 4: Mask of the Lunar Eclipse, which never released outside Japan. (I've played it: it's decent but FF3 is still the best in the series, in my opinion.) Despite working on those and the fact that he was an undertaker (you read that right) before entering the video game industry, Mr. Suda said, "I don't like horror games...There's a very small chance I'll make horror games in the future."
He almost didn't work on Fatal Frame 4 at all, rejecting Tecmo's initial invitation before finally accepting. The reason he was hesitant was because "the director, Makoto Shibata, can see real ghosts. When he makes Fatal Frame, he simulates a real ghost experience like in the game." Sounds like fun to me, but Mr. Suda reaffirms, "I don't want to make that kind of game."
Kind of a strange reason to refuse the initial offers, no? I almost get the feeling he sees ghosts himself and didn't want to share the experience like Shibata does