While Japanese game companies have had a lock on 'survival horror' games, historically, the many of the games have not taken place in Japan, but rather western locations, mostly in the US locations and involving exclusively westerners (Resident Evil-except for Resident Evil 4 which takes place in an unnamed Eastern European country, Silent Hill, and the somewhat oddly named Michigan, which actually takes place in Chicago). However, there have been several survival horror games based in Japan and involving exclusively Japanese characters, such as Siren and TECMO's Fatal Frame Series.
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In the 3rd release in the Siren series, Siren:New Translation(J title)/Siren:Blood Curse(western title), intermixes westerners and Japanese characters in a Japanese setting. Following up the storyline from the previous Siren games, a western TV crew investigates the story of a haunted/zombie infested Japanese village and oddly enough, bad things start to happen.
The game is being released in Japan as both a PS3 disk based game and as download off the Playstation Network, while in the US and EU, the game is being sold exclusively as a download on the Playstation Network in four separate chapters, each a separate purchase.