Since MGM faces uncertain future, it was speculated that "The Hobbit" would be in trouble. However, latest report mentions that the film is expected to start principal photography in November this year in New Zealand.
Additionally, Mike Fleming from Deadline Hollywood got a scoop that scripts for two parts of the movie have been completed and casting will begin soon. It was further said there are discussions underway right now to determine whether "The Hobbit" will be shot in 3-D or not.
The alleged November start for "The Hobbit" is pushed back from the original estimate of March 2010. The first part of "The Hobbit" is now slated to arrive in December 2012, while "The Hobbit 2" will come out a year later.
The movie, which will be directed by Guillermo del Toro, will re-create the scenes of the novel, with additional events that make an impact to "The Lords of the Rings", such as the expulsion of Sauron from Mirkwood by The White Council. Ian McKellen has been confirmed to reprise his "LOTR" role as Gandalf, but the cast for major character Bilbo Baggins has not been announced yet.