Silent Hill 2 remake developer Bloober Team has revealed that its partnership with Take-Two's Private Division label for an upcoming new horror IP has ended.
That's according to a notice filed with Polish press agency PAP Biznes (for which we're using machine translation), wherein Bloober Team says Take-Two terminated its agreement with Bloober Team over the currently-codenamed Project C. No reason was given in the notice.
Bloober Team says it is continuing work on Project C with a view to self-publishing the game, but that the studio isn't ruling out the possibility of working with a new publisher for the game.

In fact, Bloober says it believes the termination of its agreement with Private Division could provide a "significant opportunity" to increase revenue from Project C.
The partnership between Bloober Team and Private Division was originally announced back in December 2022, but was actually put into effect in September 2021.
No details have been released about Project C yet, so we're not sure exactly how much involvement Private Division actually had in its creation, nor do we know how much of a setback this might prove for Bloober Team.
This isn't the only project in the works at Bloober right now, though. The studio is also currently working on the Silent Hill 2 remake for Konami, and with a Silent Hill Transmission presentation due later today, we may well learn more about that project in a few hours' time.

Bloober Team's history with horror also extends to 2021's The Medium, a survival horror-come-narrative adventure game with more than a shade of Silent Hill about it.
You might also recognize the studio's name from the Layers of Fear series, which takes a much more straightforward "walking simulator"-style approach to horror than The Medium (and, hopefully, Silent Hill 2 as well).
We'll have to wait and see what comes of Bloober Team and Private Division's partnership dissolving. Stay tuned for more.