Last week it was announced that Universal Pictures and 20th Century Fox decided to back out of the Halo movie, partly due to concerns over the film's budget. An article posted on the Los Angeles Times website says that the film was expected to cost $145 million. Both studios tried to renegotiate contracts with the filmmakers attached to the movie at the last possible second to cut costs.

A statement from Microsoft on the Bungie website regarding this move says, "We are disappointed that Universal wanted to significantly renegotiate the financial points of the deal." Universal Pictures and 20th Century Fox wanted Microsoft to take a pay cut. The original deal was for Microsoft to receive $5 million upfront and 7.5% of revenue from theaters.


Despite loosing the backing of these two major studios, Microsoft is working to keep the movie alive, saying, "our goal remains the same -- to find a partner that shares our passion and will creatively collaborate with us to best represent the story and spirit of the Halo franchise...We are already in discussions with potential partners who recognize the value of the Halo brand." Peter Jackson and Fran Walsh, best known for the The Lord of the Rings trilogy, are still onboard as executive producers. This should be a big help to Microsoft as it seeks new partners for the Halo movie.