It was too good to be true wasn't it? One of the worlds biggest directors joined hands with one of the biggest games of the last generation, only a pesky Italian plumber could put a leak in these works. Halo the movie has officially been postponed until new backing can be found to fund the project.
Film studios Fox and Universal pulled out last month, but the film-makers vowed to continue with the project. Now Microsoft says it has "mutually agreed" to delay the film with Jackson and his co-producer Fran Walsh. "We are confident that the final feature film will be well worth the wait," it said in a statement.
There had been rumours that costs associated with the film could rise to $380m, after an initial budget had been set at around $250m. The film-makers said the studios pulled out after they and Microsoft refused to reduce their deals on the project.
View: BBC News