I remember someone posting something about this at DoujinStyle. Looks interesting, though I gotta wonder if this is gonna be more nightmare fuel than Demonophobia. Certainly looks like a Japan-only game if the shock-value is too much for it to be overseas.
If anyone doesn't know what Demonphobia is, its a Ryona / Guro game that came out somewhere in 2008 (it appeared out of nowhere from the forums that I've seen) where you play as a 16-year-old girl named Sakuri who gets sucked into Hell after performing a demon summoning ritual that went wrong or something like that. The game is sorta like Clock Tower on the Super Famicom and you can die in many (and extremely horrific and gruesome) ways. I've seen a playthough of the game on YouTube, and I couldn't sleep for a few days because how [tornado fang]'d up that game is.. (it was recommendation that the player is 21+ of age)
-EDIT-
Forgot to mention that Demonophobia is actually getting a sequel called Xenophobia, which looks like its gonna be more [tornado fang]'d up than Demonophobia from videos of the early betas of the game that I've seen.