Wow!  And even cooler news is that his very first musical project with them is the mysterious horror game that Suda51 (killer7, No More Heroes) and Shinji Mikami (the creator of Resident Evil) are developing together.  Guess we all should have taken the hint when a few Yamaoka tracks were found hiding in No More Heroes 2.

Suda + Mikami + Yamaoka??  This is madness!  Though I think I speak for every horror/SH/RE/Yamaoka/Suda fan when I say that I sooo cannot wait for that game to come out!

http://www.1up.com/do/newsStory?cId=3177798

I'll say here what I said on Kotaku: Yamaoka could NOT have ended up at a better place.

That does sound like a horror match made in heaven. I wasn't a fan of Killer7 at all, but I hear Suda51's work on Fatal Frame IV was sublime.

Truer words have rarely been spoken.