Short answers, pulled from the story.
Hideo Kojima and Guillermo del Toro co-directed the cancelled video game Silent Hills. Konami's president approached Hideo Kojima in September 2012 to direct the next installment, and he accepted the offer with enthusiasm.
The interactive teaser titled P.T. launched on the 12th of August 2014 through the PlayStation Store. By the 1st of September 2014, Sony announced that over one million copies had been downloaded from the network.
Silent Hills was cancelled due to conflicts between Hideo Kojima and senior staff at Konami following the completion of Metal Gear Solid V: The Phantom Pain. Konami simultaneously announced a restructuring of its video game business and removed all references to Kojima Productions from promotional materials.
Norman Reedus confirmed the cancellation via Twitter on the 27th of April 2015 after Guillermo del Toro made the announcement on the 26th of April 2015. Konami pulled P.T. from the PlayStation Store on the 29th of April 2015 effectively removing access to the playable teaser.
Fans upset by the decision started a petition on Change.org asking Konami to continue the project which eventually gathered 194,279 signatures before the campaign concluded. That petition represented significant fan frustration regarding the cancellation.