As you're most likely now aware, yesterday (April 27th) a tweet from Photojournalist Matt Hackney who attended San Francisco Film Festival stated that Guillermo Del Toro is no longer working on Silent Hills via this tweet:
Along with this actor Norman Redus later tweeted that he was "Super bummed" that Silent Hills was no longer happening.
A statement released to Kotaku.com confirms Silent Hills is indeed cancelled. Fortunately it's not all doom and gloom as they have stated that talks are currently underway with Del Toro and Kojima, there is just no more Redus in the picture.
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"
RIP Silent Hills