So, to put into perspective how terrible this is for everyone...
-Kojima, film aficionado, finally gets the chance to work with a well known actor (Norman Reedus) and film director (Del Toro). Basically a step up from simply hiring Kiefer to act in his game - this was going to be a real game/movie collaboration. Years after wanting to get into film and make games into their own art form, he finally got his chance to cross the streams - and it was pulled from under him.
-This is the second time Del Toro has had a game pulled out from under him. He is obviously bummed about it.
-Silent Hill fans had something to look forward to. They were going to get a mainline, console AAA title for the first time in a while. Not anymore.
-PT was hailed as one of PS4's greatest "games". Everyone was looking forward to it, and the teaser was a great use of marketing and a great way to give us a taste of what was to come. So, after having that carrot dangled in front of us, we are now forbidden from ever obtaining it.
-From a business perspective, this was likely going to make Konami a lot of money. I'm armchair analyzing here, but Del Toro + Kojima + Reedus + well known, established franchise seems like a very lucrative proposition to me. Konami likely shot themselves in the foot over an internal dispute.
This sucks. Plain and simple.