Konami Makes Statement About “Silent Hills’” Status
It Doesn't Look Good for "Silent Hills"
After Sunday's claims of "Silent Hills" being cancelled, Konami spoke with GameSpot about the game's status.
Konami said, "Our contract period with Reedus has expired. We will continue to develop the Silent Hill series." Take note of phrasing there. Konami sidestepped saying whether "Silent Hills" is still being developed or not. At this point, with Kojima, Guillermo del Toro, and Norman Reedus out of the project now, "Silent Hills" looks like it is all but officially cancelled.
Source: GameSpot