Variety reports that Andrzej Bartkowiak, the director behind the Doom film adaptation, has been signed by Hyde Park Entertainment and Capcom to direct Street Fighter, an upcoming live-action treatment of the legendary game. Bartkowiak’s past credits also include Romeo Must Die, Exit Wounds and Cradle to the Grave, as well as contributions to Lethan Weapon 4 and Speed, among other films.

The site states that production on the film is set to begin early next year and that Fox is distributing. Justin Marks has penned the script; he has been involved in other videogame and comic book adaptations including Voltron and He-Man.

This marks the second film in the game’s long-run. The first was a complete disaster - starring Van Damme - and is widely considered to be the worst “video game film” of all time. This time around, they are focusing mainly on Chun-Li as she embarks on a “quest for justice.”

Bringing extremely bad news to Halo fans is Variety who reports that both Universal and Fox Studios have backed out of the Halo movie adaptation. They cite rising movie costs and apprehension over a director who has no feature film under his belt. Apparently, there was a rumor that the budget for the movie was close to $200 million, the lion’s share of which was supposed to go to Microsoft.

According to Peter Jackson’s agent, the studios asked Microsoft, Bungie and Peter Jackson to ’significantly reduce their deals’ in the movie. This was “respectfully declined” however, prompting both studios to pull out. In response, Bungie is all “optimism, satisfaction and happiness for reasons can’t go into,” as per a weekly update on its site.

No new studio has been lured in announced yet.

VU Games has announced Eragon, an upcoming fantasy-adventure game tie-in with the movie of the same name. Scheduled for release this November for the PC, PS2, Xbox, GBA, DS, PSP and Xbox 360, Eragon is inspired by Christopher Paolini’s best-selling fantasy novel. The movie is expected to hit theatres on December 12.

Based on the best-selling novel, this epic fantasy-adventure centers on a young farm boy named Eragon whose destiny is revealed with the help of a dragon. Eragon, now a Dragon Rider, is swept into a world of magic and power, discovering that he alone has the power to save - or destroy - an Empire.

The game will let players engage in a combo and magic-based combat system, including finishing moves, multiple grapples and degradable blocks with counter attacks. Players will also be able to take part in flight-based combat and summon dragons; the game will also feature two player co-op featuring team attack bonuses and dragon fight/flight combo gameplay.

E3 will be host to the game’s public unveiling, with Fox and VUG premiering video footage and first look at the gameplay.