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October 20, 2006 - The Halo movie hit a snag today as both studios financing the project dropped out! Rumors are swirling that 20th Century Fox and Universal were freaked out over a rising $135 million budget, but producers Peter Jackson and Fran Walsh are claiming that the studios bolted after filmmakers and Microsoft refused to have their share of the profit cut. Walsh and Jackson's rep, Ken Kamins, spoke to industry mag Variety and explained, "What happened was this: Universal, on behalf of both studios, asked for a meeting with the filmmakers just prior to the due date of a significant payment. Basically, they said that in order to move forward with the film, the filmmakers had to significantly reduce their deals. They waited until the last minute to have this conversation. Peter and Fran, after speaking with their producing partners and with Microsoft and Bungie (the studio that designed the original game), respectfully declined." Microsoft would have received the majority of a $5 million upfront payday on October 15th, in addition to later profit participation of 10%. Kamins says that rumors of a $200 million budget aren't true. He added that the only numbers put out there by the filmmakers were "$145 million less the 12.5% rebate that you get from shooting in New Zealand, which would put it at about $128 million." So what does all this mean for the possibility of a Halo movie? The filmmakers and Microsoft seem undeterred. In fact, Kamins says that Microsoft is already in talks with other studios that may distribute the film based on the blockbuster gaming title. And with pre-production continuing at Jackson's Weta Workshop, the studio financing problem could be a mere speed bump on the road to making the Halo movie a reality. And what of the status of attached first-time feature director Neal Blomkamp? "Everybody is supremely confident in Neal," Kamins told Variety. "Part of what excited Peter and Fran was Neal's vision. We're very confident this film will move forward with the creative partners intact, who will take the film to production."

-IGN.com