Although admitted that the deal could fall through, he maintains that "talks are under way" between the companies. Legendary became acquainted with Epic after co-financing the upcoming Gears of War movie with New Line Cinema, Fritz reports.

Both Legendary and Epic declined to comment on the deal, says Variety.

If you're wondering why a movie studio would be a video game developer, Variety explains that Legendary executive Thomas Tull resigned from the Brash Entertainment board just two weeks ago, but still sees games as a lucrative commodity. And Epic is an attractive studio, as its Unreal Engine is the most widely licensed graphics middleware in the industry, producing stable profits.

Unlike Gears of War 2, we don't know .

arrives on Xbox 360 on Nov. 7. Legendary plans to release a Hollywood interpretation of in 2009.