After Microsoft lost the support of Fox and Universal Pictures for the Halo movie, the company insisted that production would move full steam ahead as they continued to look for new partners. Today, however, according to Microsoft and Wingnut Films, the project has officially been put on hold.

"As was previously confirmed, we deeply regret that both Universal and Fox did not choose to move forward with financing the Halo film under the original terms of the agreement. At this time Peter Jackson and Fran Walsh, along with their partner, Microsoft, have mutually agreed to postpone making a feature film based on the Halo video game universe 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 to the big screen," reads the statement.

Despite this postponement, Microsoft remains confident that the movie will still get made; it'll just take a bit longer than originally planned. "We are fully supportive of Director Neill Blomkamp's vision of the film. Neill is a tremendously gifted filmmaker and his preliminary work on Halo is truly awe-inspiring. While it will undoubtedly take a little longer for Halo to reach the big screen, we are confident that the final feature film will be well worth the wait," the statement concluded.

While the statement shows support for the inexperienced Blomkamp, the movie reporters at IESB.net believe that Blomkamp is actually the "real reason" the movie is now on hold. "Director Neill Blomkamp has failed to impress any of the studios. A studio exec told me last week, as I ran into him on the studio lot, 'He sure can make a Transformer dance, but, we sure as hell are not convinced that we can trust him with $100 million plus dollars.' ... I am sure that Microsoft will realize that Neill first needs to direct a couple of smaller films before he can be trusted with the flagship of properties. Peter Jackson also needs to remember that even he had to prove himself as a director before he was given the chance to direct the Lord of the Rings and finally King Kong," writes IESB.