According to Konami, it seems that their contract with Reedus has expired which is why they are planning on removing his image from the Silent Hills website. Based on this we can only assume that either they have cancelled the game which is why they don’t need Reedus anymore, or they might have gone with a different actor to portray the game’s protagonist.
They also address why P.T. was pulled claiming that the distribution period has ended. As for the upcoming Silent Hills game, Konami deftly avoided offering any concrete confirmation, instead stating that they will continue developing the Silent Hills series, but whether or not it will be the same one that Hideo Kojima promised us remains to be seen, although this does seem unlikely at this point.
All of this seems to have stemmed from the rumors that Kojima would be leaving Konami. Previously the company offered statements with regards to his departure but also famously avoided offering any kind of concrete information, instead stating that they will be “shifting their production structure”. In any case it certainly sounds like that’s it for Kojima’s take of Silent Hills which is extremely disappointing given how promising P.T. proved itself to be.