UPDATE: No dice with this rumour I’m afraid folks. Microsoft’s Phil Spencer has replied to a fan’s tweet, stating that there’s no truth in the rumour:

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Word has it that an “anonymous source” has told the fellows at Rooster Teeth that the maker of the Xbox One is trying to court Konami in order to buy Silent Hills and release it as an exclusive title on Microsoft’s latest gaming machine.

According to the mysterious source, the game is reportedly 80% complete and Microsoft is hellbent on buying the supposebly canned game from Konami for “billions” of dollars; in fact they’re doing all they can to try and purchase it before E3 next month. If successful, Microsoft would do its darnedest to release it by March 2016; according to the source. Oddly enough, when P.T. was release last summer, word was going around to not expect the game before late 2016 and as of September 2014, the game was still in early development.

This *could* potentially explain why Konami wiped P.T. from Sony’s server so that even gamers who previously downloaded the demo can’t re-download it if deleted from their consoles. However, director Del Toro and actor Norman Reedus both confirmed it’s cancellation by stating “It’s not gonna happen and that breaks my greasy heart” and “Super bummed about this was really looking forward to it,” respectively.

There is even a petition going around, which Del Toro noticed, asking Konami to have the former Kojima Production studios continue working on the game.

*If* Konami indeed fired Guillermo Del Toro and unceremoniously future endeavoured Hideo Kojima once The Phantom Pain is out, only to sell the property to Microsoft, it would be really a nasty way to do business. Especially after all the years Kojima gave to Konami. That being said, gamers would end up the winners as they’d have the opportunity to play Silent Hills exclusively on Xbox One.

Hopefully Konami or Microsoft will clear this out sooner rather than later.

Thanks IGN.