Fox and Universal have officially come to terms with Microsoft to make the Halo movie, which is now expected to be in theaters in 2007. Universal will be in charge of the production and release the movie in North America, while Fox will handle international distribution. Microsoft will receive $5 million and 10% of the gross, though the company doesn't get creative control over anything in the movie. Several Bungie employees will serve as creative consultants however.

Former Columbia president Peter Schlessel, who served as a Hollywood liaison for Microsoft, is producing. "28 Days Later" scribe Alex Garland was paid $1 million by Microsoft to pen a script that met its approval. He'll now do a rewrite with studio notes, after which U will go out to directors. "'Halo' is one of those rare properties where you have a rich world from which to draw as well as a recognized brand, which in today's times is a benefit to anyone developing and producing films," Universal production president Donna Langley said.