Multiple sources are now suggesting that a reboot of the Silent Hill series is currently in the works and has been for some time now. Konami (which owns the series) and Sony are supposedly working together on the project, in addition to several returning members of the original Silent Hill production team.
This reboot is also said to be the result of Konami hearing pitches from many different developers in addition to Sony, which did happen, so if this new Silent Hill rumor is true then Sony apparently won the bidding war. However, if true, this news likely won't be confirmed until some sort of major reveal event later on, and right now it's hard to tell when such a thing would happen.
According to both Rely on Horror and Aesthetic Gamer--which, it must be said, have proven in the past to be reliable sources of information--a "soft reboot" very simply titled Silent Hill has been in development for roughly a year now. Not only that, but some familiar faces might be contributing: Keiichiro Toyama, director and writer of the original 1999 Silent Hill; Akira Yamaoka, the series composer; and Masahiro Ito, the creature designer, are all supposedly returning to the franchise. The rumor suggests that development is currently happening at the SIE Japan Studio, which now includes members of Project Siren, aka the development team behind the survival horror series Siren.
If all those rumors are in fact true, then Silent Hill fans could have cause to be quite excited; clearly, all of the above names combined make for some serious horror game-making firepower. Of course, everyone should take the rumors with a grain of salt until such a time as they're either confirmed or denied, since none of this is "official" news yet. Assuming it is true, the next question is naturally when the news might be formally announced by Sony or Konami. It would make a lot of sense for Sony to announce it during the big PS5 reveal event being planned, but even that event has no scheduled date yet (and with coronavirus going around, it might stay that way for a while).
If nothing else, both sources seem to take this rumor pretty seriously in the grand scheme of things, which means Silent Hill fans may only have to wait a few more months to get confirmation on this. Whether or not it's true, Konami at least has ideas for the franchise, which leaves the future open to Silent Hill making its grand comeback.
Source: Rely on Horror and Aesthetic Gamer