Microsoft Corp. has signed a deal with two film studios to make a movie based on its popular space-based video game series "Halo," a spokesman for Universal Pictures said Wednesday.
Universal and 20th Century Fox agreed to pay Microsoft $5 million plus a percentage of ticket sales. The total price being paid is capped at 10% of domestic box-office sales.
The deal ends months of speculation over which studio would win the right to make a "Halo" film, which came to Hollywood last spring highly touted by Microsoft and its representatives at Creative Artists Agency. Messengers delivered a script to the studios wearing costumes and toting laser guns.
But several studios balked at an initially high asking price, which published reports pegged at $15 million plus 15% of the box-office receipts in the U.S. and Canada.
Under terms of the final deal, Universal will oversee the film's production and domestic distribution, while Fox will handle international distribution.
Universal spokesman Paul Pflug said the studios were aiming for a summer 2007 release.