Fox, Universal Dump Halo Movie

Variety reports that Fox and Universal -- the backers of the Peter Jackson-produced Halo movie -- have pulled out. Apparently, the studios had first gone to Microsoft and Jackson and asked them to take less money:

While rumors had the studios concerned over a budget that was rising above the original projected $135 million pricetag, the filmmakers said the double defection came after U and Fox played hardball and unsuccessfully tried to get the filmmakers and Microsoft to reduce their profit participation.

On October 15, Microsoft was scheduled to receive $5 million up front from the studios. They pulled out before that could happen, says Variety.

The movie itself, currently in pre-production at Jackson's Weta studios in New Zealand, where the movie is to be filmed. Jackson's representative told Variety that Microsoft was already in talks with other distribution partners and that work on the film would proceed unimpeded.