Climax USA, a Santa Monica developers studio, was working on a demo for a Silent Hill pitch for PS3. However, Konami handed over the development of a next-gen version to Double Helix Studios. As we can see in the video, for this Silent Hill prototype Climax used the same protagonist from their Silent Hill PSP game (Travis). Keep in mind that this does not mean that Travis would have been in the final storyline, as this was just a tech demo to try to pitch for a full project and probably the story was not decided yet.
While Climax USA was closed during development of Silent Hill: Origins for PSP, the UK branch is rumored to be in charge of a remake of Silent Hill 1 for PSP and Wii.