Silent Hill 2 is considered by many (including myself) to be one of the greatest games of all time because it is the zenith of how to use the medium for greatest effect. The game is great because of the way it uses the environment as the main means of communicating the story, uses the technology appropriately, and really uses the interactivity of the medium to create a feeling of loneliness and isolation without making it boring. Granted the game had some issues (terrible control scheme), but in all it was an incredible journey with great replay value that has aged well.
Multi-player mechanics would really go against everything that made this franchise great; the isolation and environmental story telling. The only real way I could envision it would be Left 4 Dead with monsters in leiu of zombies.
Konami see's Silent Hill as a franchise more than a tangible universe with a cohesive storyline. That is why we saw a mediocre at best movie, several sequels that received modest at best critical success, and the original developers jumping ship years ago. We've all seen the game jump around to multiple platforms. The game has changed from lonely and isolated horror game to a hollywood blockbuster Michael Bay mentality. The property has been streamlined.
The Call of Duty, Halo, and Madden franchises do incredibly well with multi-player c
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Of course it would probably cost little in comparison for Konami to develop and publish the title and there are enough people who would play it for the brand name alone, so I wouldn't be suprised if it does become a reality, but it makes me wish for a 5th Element mentality; if you make a work of art that stands alone on it's own very well, it doesn't really need a sequel (Bioshock comes to mind as well).
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