A few weeks ago, Microsoft's Frank O'Connor told Variety that the company is still interested in a Halo flick that would be a standalone story and not a retelling of any of the games in the franchise. With such a robust universe, it's safe to argue any director taking on the project would have plenty of material to work with to accomplish this. Recent reports say Steven Spielberg and DreamWorks may be on board.



According to New York Magazine's Vulture column, insiders say DreamWorks is focusing on creating films based off the novelizations of the franchise. Why focus on the books and not the games that made this franchise so popular? The answer is two-fold.

Universal and Fox originally agreed to option the Halo film and pay Microsoft 10 percent of earnings, with Universal overseeing production and distribution in the states. After years of legal drama Universal had dropped $12 million on the movie focusing on game canon, a project which was eventually pronounced dead. If DreamWorks sticks to the novels, the company saves itself a call from Universal lawyers demanding reimbursement for its earlier development costs. It also shows Microsoft that by using the novels, DreamWorks takes the Halo universe pretty seriously, or something like that.



There's still no formal announcement, and other anonymous Hollywood insiders quoted in the New York Magazine story don't seem to think a deal is likely. We'll have to keep watching to see how this one plays out.