Makoto Chida, Project Manager for the Grudge game, seems to think so. In a recent interview with Gamepro Chida goes over a bunch of different aspects of western and eastern horror concepts and in this he says “We believe that the Wii is the most ideal console to experience horror games and started development of this title under that premise. If the Wii did not exist, I don’t think that we would have ever developed this game.”
This is a very bold statement to make considering the Wii doesn’t have the graphical prowess the other consoles pride themselves on. Not that the interactivity couldn’t make up for this but with time moving forward and the graphical power of the Wii not, Mucky textures and limited space could easily hold any game back from it’s full potential on the Wii. There’s always the neglect that many developers put into graphics when making Wii titles so maybe Makoto can prove me wrong by delivering both and proving the Wii is the most ideal for horror games.