Roger Avary, co-author of Pulp Fiction, director of Killing Zoe, friend of Neil Gaiman, is preparing a sequel to the 2006 Silent Hill videogame adaptation, according to The Hollywood Reporter{
Avary and Hadida, through Davis Films, plan to shoot the film after Resident Evil: Afterlife which is now in preparation. Clearly survival horror franchises are the order of the day at Davis, although it's interesting that the two series should have the same home given their markedly different tones.
The original Silent Hill couldn't be called much of a success, and its muddled screenplay (at least as it reached the screen) was one of its weakest links, making Avary's continued involvement something of a worry. It used aspects from the first three games, and plot-wise, games 5 and 6 aren't that different to the rest, so it's unclear how much material would be left for further films. There's Silent Hill 4: The Room though, which is mostly unrelated to the rest of the series and features the main protagonaist visiting a series of netherworlds from his locked-down apartment. That might be interesting...
Silent Hill was a labour of love for director Christophe Gans, so it would also be a concern if he didn't come back for a sequel. The atmosphere and completely batshit visuals he brought to the project were the aspects that actually worked. Atmospherics, rather than action, are the key to Silent Hill's success as a game. But that lack of action is arguably what scuppered the first film. It's a conundrum, to be sure.