Little bit of an update: Kojima Productions logo has been removed from the PT/Silent Hills website. Konami says this is because they have switched from studio-based to a headquarters-based organization. Not sure how important this is since they also removed Kojima's name from MGS V.
http://www.gamespot.com/articles/silent-hills-pt-website-removes-kojima-productions/1100-6426298/

Well guess that's not happening.

Well i guess they mean its continuing on without Kojima, Del Toro, or Reedus

It's funny because Tecmo did the same thing to Tomonobu Itagaki and it led to the Ninja Gaiden franchise becoming mediocre and reverted to Itagaki starting up his own studio.

Well Del Toro and Reedus are saying it's dead and Konami is saying it's happening.... Are thy just getting an entirely new staff?

They'll have to scrap it and get another actor. So yeah, I think that they're gonna have to redo the whole game.

And Konami knows this is a niche game. The new writer and voice actor for this game will not be anywhere near the caliber of Del Toro and Reedus I can guarantee. I will say Kojima needs props for attempting this. 

Shit guys nice necrobump haha. I guess this could mean that they are starting from scratch. As far as I know FOX Engine is Kojima's property so they would not be able to utilize any assets that were already developed.

So odds are the game is going to be worse all around...

Yes. To me it looks like the game will either be cancelled or completely different.