Reuters reported earlier this week that the HALO movie was not going to happen. Seems there was some squabbling over funding and who gets what piece of the pie to the point that the film is indefinitely delayed. Too bad … amazing series of games, would have been fun to watch.

Microsoft Corp. on Tuesday said the company and the Oscar-winning team behind “The Lord of the Rings” films have postponed “Halo” — the movie based on Microsoft’s popular alien shoot-up video games.

“At this time Microsoft, Peter Jackson and Fran Walsh have mutually agreed to postpone making a feature film based on the Halo video game,” Microsoft said in a statement. “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,” said the company, which through a spokesman declined further comment.

The film had been scheduled for release in the summer of 2008.

JG