For those that don't remember, this game was being co produced with Hideo Kojima and Guillermo del Torro, starring Norman Reedus (of Walking Dead) and published by Konami. But, since Kojimas sudden, unknown and surprising departure from Konami, Konami has cancelled the project.
There is a playable demo of the game called P.T. that will be pulled from the PS Store soon so if you want to play what this game could have been like, head over to the PS Store asap to download the demo (as far as I know, the demo is only on PS4).
On a side note, this whole thing with Kojima's departure stinks of something. Nothing has come out and Kojima and Konami have not broken silence. Something major had to have happened.
http://www.gamespot.com/articles/konami-responds-to-silent-hills-cancellation-claim/1100-6426908/Konami Responds to Silent Hills Cancellation Claims
Publisher coy on details, but insists it will continue to develop the Silent Hill series; Confirms Reedus departure.
by Rob Crossley on April 27, 2015
Update: Silent Hills has been cancelled, Konami has officially confirmed.
Original story follows:
Amid mounting speculation that the Silent Hills project may have been cancelled, Konami has issued a statement that suggests the game is, at the very least, undergoing major changes.
When the Silent Hills project was first announced, Walking Dead star Norman Reedus was named as its lead actor, lending both his face and voice to the game. But on Monday Konami confirmed to GameSpot that "our contract period with Reedus has expired," following the actor's claims on Twitter that the entire project has been axed.
Regarding those rumours, Konami wouldn't discuss the Silent Hills project specifically, but said: "We will continue to develop the Silent Hill series."
Grave concerns over the Silent Hills game began in March, when GameSpot revealed that Hideo Kojima--Konami's most renowned developer and a director on the project--is preparing to leave the company once work on Metal Gear Solid 5 is completed.
In the weeks that followed, a slow trickle of revelations continued to suggest that Kojima Productions' relationship with Konami has become complicated. In late March, it emerged that Kojima's regular podcast series was put on hiatus. Then on Sunday, players discovered that the PS4 game P.T.--a playable teaser that was essentially a grand marketing initiative to publicise the Silent Hills Project, would be removed from the PlayStation Store in a matter of days.
Director Guillermo del Toro, who was initially signed as a co-director of Silent Hills, was reported to have said on Sunday that his collaboration with Konami "is not gonna happen."