Microsoft is still interested in making a Halo movie. It's certainly possible, Halo Reach has been getting a ton of live action promotion treatment and they look great.
"We're still interested in making an excellent 'Halo' movie," said 343 Industries' Frank O'Connor.
"We've created an awful lot of documentation and materials to support a feature film.
"We have a good idea of what kind of story we want to tell, but won't move on it until there's a great reason to do it. We're in no particular hurry," he added.
He also says that any film based on the franchise will not be "a verbatim retelling of the game," but will be a standalone story.