Shout Factory unfortunately won't be releasing this
At least not according to a review I watched on YouTube. The guy said he had wrote an email to the company asking about the film, and they responded to him saying that Universal basically had a death grip on the rights and didn't want to release the film to them, so it's unlikely we'll ever get another release of "Nightmares" in the conceivable future. It's a shame too because Universal is obviously not going to do anything with it.
I was holding out on this one for a potential Blu-ray, but after finding that out, I shelled out $55 for a used copy of the Anchor Bay DVD in an online trading forum. Decent price considering people want upwards of $100 on Amazon and eBay. Still really mad though that Universal refuses to collaborate with Shout Factory on releasing this.