It was almost expected at this point but unfortunately Konami has cancelled the development for Silent Hills and much to our dismay the game will no longer be released.
The development studios behind Silent Hills have always dealt with internal problems it seems, and as a result the latest Silent Hills game will never see the light of day. In a brief statement, Konami said, "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,"
What's interesting about this is that Konami still aren't putting down the Silent Hills IP for good. This may mean that we could see a Silent Hills game from Konami in the future. The likelihood of that happening is quite slim at this point though. The studio doesn't exactly look in great shape at this point, especially after cutting out Hideo Kojima from the equation.
Norman Reedus from The Walking Dead was also set to star in Silent Hills as the main protagonist but since the game has now been cancelled his contract period with him has expired.
Reedus posted on Twitter mentioning the cancellation of Silent Hills as well.
"Super bummed about this was really looking forward to it. Hopefully it'll come back around. Sorry everyone."
Thankfully we are still going to be getting Metal Gear Solid V but if it were still a year or two away from development there's a good chance that it could have been cancelled as well.