I can't believe so many people fell for it honestly.
It was established beforehand that Silent Hills never made it past the prototype phase. Konami called it "embryonic." The rumor said it was 80% done. How did people believe a rumor that was factually inaccurate?
Smart of him to do this. It's dumb that he was forced to do this. iGN and other sites should be ashamed for picking up that story. It put MS in a weird spot where folks would incorrectly start expecting this to be true and let down if it wasn't shown at E3.
I'm surprised anyone even considered it to be true.
Konami is too focused on their weird campaign of trying to get back at Kojima to even consider selling any of their Ips or Games to other companies. Only way we'd get it is when it's picked from Konami's rotting corpse after their self-destruction.