Universal Studios and 20th Century Fox have both backed out of their partnership to co-finance the feature film adaptation of the popular videogame Halo. This leaves Microsoft and co-producers Peter Jackson and Fran Walsh looking for a new studio to finance and distribute the film, after the studios asked both parties to reduce their cut of the pie, which they declined to do, according to Variety.
Apparently the studios balked as October 15, which was supposed to be a deadline for an upfront payment deal, approached. Rumors that the original budget of $135 million had ballooned to $200 million were rampant, and Universal, probably gun-shy from their experience with the $200+ million budget on Peter Jackson's King Kong, along with Fox, decided to call the bluff. The fact that such a huge production was resting on the shoulders of first-time director 27-year-old Neill Blomkamp probably didn't help the movie's cause, either.
However, since the major pre-production work is being done by Jackson's Weta powerhouses, no work stoppage needs to happen, as Microsoft and Jackson look for new financiers and distributors.
