It definitely seems like he was fired but I'm really not sure why. They are still going to put out MSG titles probably with a different executive now. Not sure how that's going to be. They shouldn't have canceled this project though either way and now the future for both MSG and SH is pretty grim.

Konami already made the mistake of firing Team Silent and then we got a slew of terrible Silent Hill games. Their egos allow them to believe that they can continue to make these series without the people that knew how to make it great. They're fools.