Microsoft delays 'Halo' as movie studios back out

Microsoft has delayed production of a movie based on its popular "Halo" video-game series after two Hollywood studios backed out of a deal to finance the film.

"We deeply regret that both Universal Studios and Twentieth Century Fox did not choose to move forward with financing the Halo film under original terms of the agreement," the company said in a statement yesterday.

Spokespersons from Universal and  Fox declined to comment.

Microsoft, director Peter Jackson and his partner Fran Walsh had mutually agreed to postpone production of the film, Microsoft said, "until we can fulfill the promise we made to millions of Halo fans throughout the world that we would settle for no less than bringing a first-class film."

Under terms of a deal announced in August 2005, Universal and Fox were to pay Microsoft $5 million plus a percentage of ticket sales to produce and distribute the "Halo" movie in the summer of 2007.

"Halo" and the "Halo 2" sequel have been two of the most popular games produced for Microsoft's Xbox video game console, spawning a series of novels and action figures.