Movie Bosses bid adieu to Jackson's ‘Halo’ Project

Universal and Fox Studios, who had agreed to co-finance ‘Halo’, an upcoming film based on the popular video game series, abruptly backed out of the picture, leaving rumors floating that the budget may be rising above the projected $135 million.

According to insiders, the backing out of the studios will make the budget rise upto $200 million.

Directed by Neill Blomkamp and produced by Peter Jackson and Fran Walsh, ‘Halo’ will be based on the video game series of the same name. The Halo universe currently spans three novels, an upcoming novel (Halo: Ghosts of Onyx), two more upcoming novels, two video games, three upcoming video games (Halo 3 and Halo Wars and another announced unnamed game), and the Halo Graphic Novel.

Movie bosses had asked executive producer Jackson and computer game giant Microsoft to reduce their profit margins on the project. The request was allegedly refused.

The studios were also concerned that the costly film is being made by a first-time director, Neill Blomkamp.

But Jackson spokesman Ken Kamins says: "The only budget the film-makers every spoke about was $145m (€115m) less the 12.5% rebate that you get from shooting in New Zealand, which would put it at about $128m (€101m). That was the only number that was ever discussed."

On February 3, 2005, Creative Artists Agency confirmed that Microsoft had completed a million-dollar deal with Alex Garland to write a screenplay based on the video game series Halo, which would then be offered to studios. Microsoft released Garland's completed screenplay to various Hollywood studios on June 7, 2005, looking to be paid a $10 million fee as well as the studio's agreement to adhere to guidelines set by the game's developers.

Microsoft also wanted the studio to seek approval over the director and cast. In addition, Microsoft sought full merchandising rights for itself, a minimum $75 million budget, and company representative’s full access to the film's rough cuts in Los Angeles. Studios like Paramount, DreamWorks, Sony, and Warner Bros. did not grant creative rights to the film and passed over the project.

A few days later, 20th Century Fox and Universal Studios negotiated with Microsoft to divide ‘Halo's’ distribution rights. The original $10 million deal was reduced based on the studio’s negative response to the exorbitant price tag. In the negotiations, Universal gained rights to release the film in North America, where Fox would distribute the film overseas.

On October 4, 2005, Bungie Studios announced that director Peter Jackson was signed onto the project as an executive producer. The following year, on August 10, 2006, Universal Pictures announced that Neill Blomkamp was attached to helm the project, where he would make his directorial debut. The Weta Workshop and Weta Digital film effects companies were also announced to be responsible for handling ‘Halo's’ effects.

Despite the backing out of studios, a spokesperson informed that Microsoft is in talks with other studios, and preparation of the film continues.

The film will be shot in Wellington, New Zealand and is slated for a summer 2008 release.