With Universal Pictures and 20th Century Fox having backed out of the deal for a film adaptation of hit video game "Halo", the only two remaining viable studio candidates (Warner Bros. & Paramount) were reportedly blanching at the idea of the expense.

Consequently it comes as no surprise that Peter Jackson and Microsoft's WingNut Films has released the following statement saying that production on the film has officially halted:

"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.

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 Summer 2008 release is now no longer an option which would mean a 2009 release at the earliest.