However, such claims are incorrect. In fact, the source of the matter, a Variety article, is horribly outdated.
Variety's story was originally posted over a year ago, on October 19, 2006. At the time, numerous sites, Shacknews included, reported on the news that Universal and Fox had backed out of the project, allegedly due to budget concerns.
About two weeks after Variety's initial report, Wingnut Films, Peter Jackson's production company, issued a press release that officially put the project on ice. "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," said the company.
"While it will undoubtedly take a little longer for Halo to reach the big screen," read the release, "we are confident that the final feature film will be well worth the wait."
In other words, Wingnut and Microsoft's decision to postpone the project was the last public word on the matter. All those quotes about the movie still being in production are old and outdated. So there you have it. Move along folks, there's nothing else to see here.