Variety reports that 20th Century Fox and Universal Pictures have closed their deal to make a movie based on Microsoft’s hit videogame Halo, with plans for a tentpole release in the summer of 2007. The two studios will pay Microsoft $5 million against 10% of the gross.

Universal will oversee the production and is handling domestic distribution, while Fox will take foreign distribution. The studios will split revenues 50/50 out of a shared pot, adds the trade.

Former Columbia president Peter Schlessel, who served as a Hollywood liaison for Microsoft, is producing. 28 Days Later screenwriter Alex Garland was paid $1 million by Microsoft to write a script that met its approval. He’ll now do a rewrite with studio notes, after which Universal will go out to directors.

The film is based on the game franchise which has grossed $600 million.

Sources: ComingSoon.net & Variety