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Sounds like Corpse Party if you ask me.
Watch Symphogear
....
Damn, I need to get this stuff
http://steamcommunity.com/id/Xan-Xan/
DEAD
Looks like Demon was right, It is Corpse Party for the PSP
It will be released over here as a PSN only download sometime this fall.
GOH! JII! RAH!
Face me now, Bitch!
Spoony Bard
According to the Visual Novel Database, Corpse Party is a simulation game. Its page here on TVTropes categorizes it as a horror visual novel, and states that there are health points. I honestly don't know how how much gameplay it has. If someone knows, be sure to say so.
I really didn't expect any company would license this. Very few companies have released visual novels on consoles in English. Aksys has stated that its horror game 999 on the DS was a success... but I don't know if anyone bought the indie game Chaos Gateway on the 360, and I don't think any companies have had success selling romance VNs on consoles in English.
Since the PSP seems to be hobbling to the end of its lifespan, especially in the west, I suppose it makes sense that companies are now releasing more niche products in English. Sony *might* not be as concerned about stuff which will sell millions, or make the system look high-tech. And it does make sense to sell Corpse Party on the Playstation Store, since retail stores don't carry many PSP games any more.
Um....shit.....
GOH! JII! RAH!