Play Halo?! Nah. I’ll Wait for the Movie.

Microsoft has inked a deal to bring a movie based on its popular sci-fi video game "Halo" to the big screen in 2007.

Microsoft has signed a deal with Universal Pictures and Twentieth Century Fox to make a movie based on its popular science fiction action video games Halo and Halo 2, targeting a release in mid-2007. According to reports, Universal will oversee both the production and U.S. distribution of the film, while Fox will handle overseas distribution. The studios will split the film’s revenue equally, after paying Microsoft $5 million outright and 10 percent of the film’s gross revenue.

The terms of the agreement are substantially less than Microsoft’s initial demands, which reportedly entailed $10 to $15 million up front, 15 percent of the film’s gross, plus creative control of the project. The current deal apparently allows the Redmond software giant “extensive” consultation on the film with several of the game’s Bungie development team on board as consultants, but permits Microsoft no veto power.

The film is being produced by Peter Schlessel from a script written by Alex Garland (The Beach,28 Days Later), who was reportedly paid $1 million for his script presumably pitting Halo’s protagonist “Master Chief” against alien invaders known as the “Covenant.” Garland was chosen in part for his track record crafting scripts which appeal to the demographically-significant audience of teenage boys and men aged 18 to 34.

It’s not unusual for action films to be converted into video games, but the translation from game to film is not always successful in either artistic or commercial terms. Arguably the most successful transition to date is the Lara Croft Tomb Raider series featuring Angelina Jolie; other recent efforts have included two Resident Evil features, Final Fantasy, and Wing Commander