Microsoft + King Kong + Lord of the Rings = a New Game Studio

Microsoft announced that it will be creating a new video game studio in collaboration with "Lord of the Rings" and "King Kong" director Peter Jackson.

The studio, which will be called Wingnut Interactive, will be a joint partnership between Microsoft Game Studios and its subsidiary studio, Bungie. It will work on the creation of a new title in the hit "Halo" series of games.

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