In the end, though, it wasn’t the Master Chiefs’ fault that the deal stumbled. Nor was it CAA’s. The failure of the Halo movie remains a potent illustration of the gulf that still lies between Hollywood and the videogame business. It should have been the tent-pole movie to die for, instead it became the one that got away. Millions of Halo fans around the world wanted a movie, yet it failed to launch. Partly, it stemmed from the on-going inability of both sides of the deal to understand each other’s culture, needs and language.
Most of the studios who read the Halo screenplay passed immediately. Microsoft’s terms were simply too demanding. By the end of Master Chief Monday there were only two horses in the race: Fox and Universal. Microsoft hoped to use each to leverage off the other but hadn’t banked on the studios’ very different approach to doing business. “What the games industry doesn’t understand is that this town is all about lunch,” explains Shapiro. “It doesn’t happen like that in the games industry. If there was a movie studio going out to the games publishers to license Avatar or something like that, they’d say ‘Ok we’re licensing Avatar, send us your best deal. But none of the games publishers would talk to each other and say ‘Hey, what are you going to offer them?’”
The studios weren’t so reticent in sounding each other out. “What happened was Universal called Fox and asked them what they were going to offer,” continues Shapiro, who watched events unfold close-up. “They decided to partner on it. ‘Let’s offer the same deal and offer to partner’. So now we lost our leverage.” Universal agreed to take U.S. domestic, Fox would take foreign. In the blink of an eye Microsoft’s bargaining position had been pole-axed.
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