UPDATE 27/04/2015: Konami has sent us over a brief Q&A on the likely Silent Hills cancellation.
In it the Japanese company says it will continue to develop the Silent Hill series, but it fails to deny Silent Hills, specifically, has been cancelled.
There's also reference to an image of Norman Reedus which supposedly disappeared from the official Silent Hills website. But as far as we can tell the image of the actor is still up. Perhaps it will be removed later today.
Here's the Q&A, for what it's worth:
Why has the image of Norman Reedus disappeared from the official website?
This is because our contract period with him has expired.
Why is "P.T." no longer available on Playstation Network?
Because the distribution period has expired.
What will happen with regard to "SILENT HILL"?
Konami Digital Entertainment Co., Ltd. will continue to develop the "SILENT HILL" series
.What will happen with regard to "P.T."?
P.T. was purely created to be a playable teaser for "SILENT HILL."
What do you mean by "playable teaser"?
The playable teaser was a trial edition of "SILENT HILLS" intended to give players an idea of the game concept.
ORIGINAL STORY 26/04/2015: Silent Hills is "not gonna happen" according to Hellboy and Pan's Labyrinth director Guillermo del Toro, who was working on the game with Hideo Kojima and The Walking Dead actor Norman Reedus.
According to photo journalist Matt Hackney on Twitter, del Toro made the revelation at a San Fransisco Film Society event last night. The director reportedly said during a Q&A about Silent Hills, "It's not gonna happen and that breaks my greasy heart."
Since there hasn't been any publicly released audio of this we'd normally classify it as a rumour, but then Norman Reedus confirmed the project being dead in the water on Twitter.
"Super bummed about this was really looking forward to it. Hopefully it'll come back around. Sorry everyone," Reedus wrote in a tweet linking to an article onFansided about del Toro's quote.
It was often suspected this would be the case when Konami announced that it would be removing the game's playable teaser, P.T., from the PlayStation Store on Wednesday, 29th April.
We've requested comment from Konami on this and will update should we hear back.