Remember Peter Jackson saying Halo Chronicles had been cancelled? When he said the project "fell apart," "is no longer happening," has "collapsed," and that his "involvement with the project" has "ended"?
Microsoft has released a statement on the matter, using less final wording.
"Microsoft Game Studios is deeply committed to supporting and strategically growing the Halo franchise, and our relationship with Peter and his team is something that we greatly value. Given the bandwidth of both of our companies we've decided to put this joint effort on hold and prioritize resources against other projects like Halo 3: ODST, Halo: Reach and Halo Legends."
So there you go, sci-fi hobbit fans. Cling to those ethereal syllables. Dare to dream.