Universal Pictures and 20th Century Fox have backed out of co-financing the big screen adaptation of Microsoft' s Halo, reports Variety.

The trade says that while rumors had the studios concerned over a budget that was rising above the original projected $135 million budget, the filmmakers said the double defection came after Universal and Fox played hardball and unsuccessfully tried to get the filmmakers and Microsoft to reduce their profit participation.

The studios made the pay cut demand as a Oct. 15 deadline approached. On that day Microsoft was to have received the bulk of a promised $5 million upfront payday. The software giant also stood to receive 10% of gross for rights to the game and a script by Alex Garland.