Microsoft has confirmed that plans to produce a Halo movie are still going ahead, despite the decision of Fox and Universal to pull out of the project.
The movie studios were due to fund and distribute the Halo film, on the understanding that Microsoft Game Studios and developer Bungie would have almost complete creative control over the project.
But last week Fox and Universal demanded that their deals be improved - and when executive producers Peter Jackson and Fran Walsh refused, the studios pulled out.
Now Microsoft has released an official statement via the Bungie website which reads: "We are disappointed that Universal and Fox wanted to significantly renegotiate the financial points of the deal. But the Halo franchise is hugely popular and our goal remains the same - to find a partner that shares our passion and will creatively collaborate with us to best represent the story and spirit of the Halo franchise.
"Peter Jackson, Fran Walsh and the rest of the creative team are dedicated to ensuring the Halo movie becomes a reality," the statement continues.
"We are already in discussions with potential partners who recognise the value of the Halo brand and its appeal to consumers worldwide."
Bungie has also reaffirmed its commitment to the Halo film, stating, "Frankly we're interested in making the best movie, and it's possible that a partner who's more concerned with numbers might not be the best partner for what's more vitally a creative process.
"Suffice it to say that Peter, Neill [Blomkamp, director], Fran and Microsoft are as excited and dedicated as ever and WETA continues the pre-production process."
More news is due to be announced "in the next few weeks".