UPDATE #2: Konami has told Kotaku the following information:
Konami is committed to new Silent Hill titles, however the embryonic ‘Silent Hills’ project developed with Guillermo del Toro and featuring the likeness of Norman Reedus will not be continued.
In terms of Kojima and Del Toro being involved, discussions on future Silent Hill projects are currently underway, and please stay tuned for further announcements.
UPDATE: Norman Reedus has confirmed that the game is indeed cancelled via Twitter. It’s officially over.
So if you've not heard of "Silent Hills", it was set to be the next Silent Hill entry from Hideo Kojima (Metal Gear) and Guillermo Del Toro (famed horror producer), featuring Norman Redus (The Walking Dead's Daryl) as the main character. A Playable Teaser (named P.T.) was releases last year and blew gamers away with it creep factor.
Sadly, due to Kojima's contract expiring, and other issues, the game has been officially canned by Konami.
Silent Hills was set to release later this year, on the PS4 and possibly the Xbox One.