Yes, it does, and frankly I really enjoy playing with move rather than controllers for FPS. It feels alot more like the control I have with keyboard and mouse
There are 2 demos out right now you can test the FPS controls with move. KZ3 is the best. I don't have MAG yet so don't know how good it is. KZ3 has a lock on feature which you need because sometimes the controller goes crazy.
I really like playing with Move. Much more personal and intense. The implementation in MAG is good, but it's even better in Killzone 3. It may take some getting used to at first, but as time passes Move will become your preferred controller.