Anyone have any theories as to why Konami is putting so much effort into being incompetent?
They're getting out of this particular market and only focusing on their massive moneymakers, which is MGS and, to a far lesser extent, PES.
Silent Hill is not anywhere on this pyramid, especially currently. Now, without a director and the game never really existing beyond a teaser, there's no real way to move that project forward. Who is at Konami that could make the game? They've outsourced the series before, it hasn't worked, and it's not a series that makes so much money (like Metal Gear) that they're willing to spend money to try.
What did people think the consequence of the big-budget AAA bubble correlating with the shrinking of the Japanese market would actually be? That everyone was just going to ride on niche series and remakes for ten years until the PS4 sold super well and then suddenly the doors would blow wide open for everyone? It's a feast-or-famine market now and Konami's decided they'd rather not risk planting crops without good yields.
Yes, maybe Silent Hills could have been huge, but what's huge today? Selling two million is not a ridiculous success across PS4, Xbox One, and PC unless you budgeted for that in the beginning and something about a Kojima-produced, del Toro-collaborated, Norman Reedus-starring game was unlikely to be there. Would it have sold three million? Four? What's the number that would have made the game people want profitable?
It sucks from the perspective of I Want This Game -> I Am Not Going To Get This Game. It seems that horror can do fairly well in the market, with proper expectations, but the stars did not align for this one. I don't think cancelling it is incompetency, though. Trying to float a boat after drilling enough holes into it is the incompetent thing.