In an interview with XBOX 360 Magazine in Italy, Radek Marek Art Director on Silent Hill: Downpour said Konami is considering multiplayer Silent Hill title for XBLA. There are no plans to add a multiplayer in Silent Hill: Downpour but there are talks to make a separate chapter and characters for this endeavor.
SilentHiller over on the Hell Descent forums was kind enough to translate most of this Italian interview the multiplayer related question is as follows:
360M: Can we expect a multiplayer mode in Silent Hill?
Marek: At the moment there will be no multiplayer modes in Silent Hill: Downpour, but Konami are investigating a separate chapter devoted entirely to the Multiplayer. We do not know the details but it should be an XBLA title that most players have to survive in the town of Silent Hill.
I’m not sure how well multiplayer would fit in with the other Silent Hill titles since isolation has always played a key role in the overall atmosphere in the previous games. In the end I guess it really comes down to how it’s implemented. It might be that characters are trying to meet up with one another and must traverse the big town alone to meet in a certain place or time. It could be more like a versus mode were several people take on the role of the creatures trying to hunt down the human player. It may be different then what we are used to but I know I’m interested to see how Konami pulls it off. I think I would have a lot of fun exploring Silent Hill with a friend. What about you guys?
Source (Hell Descent Forums)