So, there is finally some news on the Silent Hill 8 front. All of this information comes from the February edition of Game Informer Magazine, scans of which you can read here: http://www.psu.com/forums/threads/247443-New-Silent-Hill-Downpour-information?p=5336926

* Title confirmed to be “Silent Hill: Downpour”
* Game will include puzzle difficulty options
* Game will include a kind of rapid transit subway system
* no retreads of old areas
* takes place in the “southeast” corner of town
* Otherworld focuses on water and rain.
* There will be “game defining choices” with “repercussions”
* Silent Hill itself is the star character
* Otherworld scenarios will be “standalone levels” rather than “remixes”
* Over 10 hours long if you go completionist
* No weapon inventory. Murphey fights with perishable items

And my personal favorite tidbit: “The lore behind Silent Hill is that its a living, breathing resort town that has a normal, day to day life. Its not this town that should have been quarantined by the government 20 years ago, or whatever. Its actually a parallel-type universe, so what Murphey is seeing in Silent Hill may not necessarily be the town itself.”