AceShowbiz -

Hopefully this won't be a bad sign for "Halo" in its development into the big screen. Variety learned that Universal Pictures and 20th Century Fox have both shockingly decided to quit co-financing the project, which is an adaptation of Microsoft's popular videogame of the same name.

Despite the rumor saying the studios getting concerned over the film's rising budget from its original $135 million, the filmmakers remarked instead that the double departure resulted after both companies unsuccessfully tried to get them as well as Microsoft to reduce their profit participation.

"What happened was this: Universal, on behalf of both studios, asked for a meeting with the filmmakers just prior to the due date of a significant payment," so Ken Kamins, the representative of the flick's executive producers Peter Jackson and Fran Walsh, explained. "Basically, they said that in order to move forward with the film, the filmmakers had to significantly reduce their deals. They waited until the last minute to have this conversation. Peter and Fran, after speaking with their producing partners and with Microsoft and Bungee, respectfully declined."

Following this occurrence, Microsoft, as Kamins said, has already held negotiations with other distribution partners to fill in seats left by Universal and Fox. As for the film itself, the man assured that prep work on it still continues as planned.