In an interview with the Italian-language Xbox 360 Magazine, the art director for Silent Hill: Downpour hints at Konami's plans to offer a separate multiplayer Silent Hill title over Xbox Live.
Saying that "at the moment there will be no multiplayer modes in Silent Hill: Downpour," Radek Marek goes on to say that "Konami are investigating a separate chapter devoted entirely to the multiplayer."
Marek said his studio did not know the details of the game, other than that it would be available via Xbox Live Arcade and "that most players have to survive in the town of Silent Hill."
It sounds a little odd; Silent Hill is quite a different survival horror game than, say, Left 4 Dead, working its scares and thrills by isolating the player. Introducing others into the mix, whether cooperatively or not, is rough departure, which is probably why it would be given its own separate title over a download service.
I've pinged a Konami rep to see if this is anything they wish to address. Any update will go here.
Rumor: Konami Bringing Multiplayer Silent Hill to XBLA [Hell Descent, thanks TheolaRegulus]