Shamus you can get a look at what the Kojima/Del Toro team's style is going to look like through "P.T." or "Playable Teaser".
Here is a Let's Play of it if your interested
https://www.youtube.com/watch?v=0B7rgDikl0k
Their style seems to be a little different, and their big finale was a rather obtuse puzzle that has some people concerned about where the game might be going. But basically you can see their take on Silent Hill there.
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That said, on the subject itself I'm going to have to disagree with Shamus on most points. The overall storyline of Silent Hill revolves around that cult and the original empowering force they set loose (the primary manifestation of which is destroyed at the end of SH1). The beauty of where they went with this is that "Silent Hill" can manifest in different ways, it can be a psychological torment aimed at the people who wind up there, or it can be someone caught in someone else's psychological torment, or it can be general malevolence leftover from the energies gathered there. Silent Hill is basically a giant pit of darkness where it can be used to tell almost any kind of a story.
The thing about Silent Hill 2 is that it was developed largely before the game industry became concerned about being politically correct and not offending anyone or pushing things too far. When the PS-2 was new and the Demo for "Silent Hill 2" was released it got a lot of criticism because of the continued use of the rogues gallery from the first game, including the flayed killer kiddies, which you could bludgeon to death. SH2 was edited for the sake of moral crusaders screaming "oh think of the children" (literally), but a good portion of the storyline and set up remained more or less untouched. Later games in the series were apparently developed from a business perspective where they set out first and foremost not to offend anyone, and the result was to continually recycle the same basic stuff, and take as few risks as possible, turning it into a sort of kiddie spook house in video game form.
It should also be noted that some of the rogue's gallery from the first game was still recycled (after all, why wouldn't these creatures still be around?) and not as totally psychological as many people seem to think, what's more there is no real reason why what it drew from a specific person that worked, like say Pyramid Head (who is huge and intimidating) wouldn't be kept around the same way other monsters were. A lot of people not thinking things through and who overrate the second game, tend to be dismissive of the third+ game for re-using past elements without realizing that the second game reused them as well.
I honestly do not think combat is what hurts horror games, indeed, I find that not having combat in many cases actually tends to reduce the experience and the tension because it becomes increasingly silly, a forced stealth section or whatever is even worse than being able to kill a monster, and frankly if a monster has a physical prescence (ie it's not an intangible spirit or whatever) by rights you should be able to kill it. The trick is to make everything freaky enough where simply killing a monster doesn't change how messed up the whole situation is. The problem of course being that game developers don't want to take the risks in actually trying to do something creepy and bizzare enough to get horror-experience reaction from jaded fans... and really that's part of the factor as well, if you already played "Silent Hill 2" and are a genera fan, you've already become used to their brand of creepy, with nobody raising the bar due to already having slammed into complaints by moralists and not being willing to push ahead anyway, everything just kind of stayed at the same basic level and it's all become about re-presenting the same exact stuff.
At any rate, it remains to be seen if "Silent Hills" and "The Evil Within" will succeed in creating a new generation of high-budget horror games. A lot depends on whether they are made for horror fans, or if they are created for a general audience and setting out to do the expected things without offending anyone.
At any rate, as I pointed out above, if you want to see the new version of Silent Hills check out the link above (apparently P.T. is on PS-4). I used that particular let's play link because the final solution is in a second link under the video which shows that obtuse puzzle being solved (how you would ever figure that out is beyond me) and then the brief trailer that the whole playable teaser leads up to.