Silent Hills has reportedly been cancelled while its teaser demo P.T. is to be removed from the PlayStation Store this week.
Silent Hills was due to be developed by Hideo Kojima, who is believed to have been in a prolonged dispute with the publisher for some time, leading to public disputes involving the beloved Metal Gear Solid series. Heralded movie director Guillermo Del Toro was also involved with the project, and confirmed the game's cancellation over the weekend at a convention in San Francisco. "It's not gonna happen and that breaks my greasy heart," he said
Update: Konami has issued a statement to GameSpot, confirming that Norman Reedus is no longer working on the project, but Silent Hills is still in development:
"Our contract period with Norman Reedus has expired," the statement reads, "we will continue to develop the Silent Hill series."