I'm almost certain this has something to do with the project not fitting within Konami's budget. They're probably going to find another developer to create a New Silent Hill.
Tbh, taking a risk on this game budget wise would probably have done this company some justice. When was the last time any silent hill game was this anticipated? Even people who aren't fans of the series wanted to play this game. I'm guessing they can't risk another Silent hill flopping like 4.
**** me gently! First Rise of the Tomb Raider being exclusive, uncharted being delayed and now this being cancelled. This is just not a good year for gaming.
How the hell are you going to create the most inventive and most elaborate promotion scheme of a video game in the world… and then shut it down? Like WTF happened, because I… can't… even…