Initially reported by french video games site Gameblog, and looking like it is confirmed by Eurogamer, with the exception of Pro Evolution Soccer, Konami may indeed stop production of AAA titles. This move would leave the future of very well known franchises like Castlevania, Silent Hill, Metal Gear, and many others unknown. The report is saying that production for all AAA titles has either been halted or the games have been canceled all together. Would this mean a shift toward mobile gaming, or something entirely new? Only time will tell.
Until we have official information coming from Konami, make sure you don't believe every rumor that comes through the pipes. Patience is key on these kinds of things.