NeoGaf Member Borman put together this video highlighting a piece of gaming history; a lost pitch by Climax Studios of a Silent Hill project on the PS3.
Back in early 2006 when Climax LA was working on Silent Hill Origins, they were also trying to get some then-next gen projects off the ground. Konami was entertaining pitches for a console Silent Hill, so they used some of the assets they had already made for Origins to create this pitch using early UE3 tech. It was actually two pitches in one by the end, as Silent Hill didn’t seem to go anywhere but the team was proud of their concept. So they also pitched it as Broken Covenant, which was essentially the same idea, minus the Silent Hill ties.
I haven’t found anything updated past August 2006, and it obviously didn’t get picked up, so that looks to be the end of the road for the game. It would have featured stealth sections, some action, a somewhat open world, and a bit of a change for Silent Hill games at the time in taking place in Arizona.