According to this latest report, at least...

https://www.pcgamer.com/silent-hill-2-r ... re-on-out/

Unsure how this bolds for the Remake.....

Well you can see why Team Silent fragmented! I think it'll be interesting seeing them attempt something that isn't psychological horror. Probably saw they can make even more money from non-psychological horror games.
They'd go up in a lot of people's eyes if they can be successful both in PH games and other genres.

I support their decision. But mainstream games can still have psychological elements.