Redmond, Wash. - Microsoft announced on Wednesday that it has partnered with "The Lord of the Rings" director Peter Jackson to launch a new video game development studio, Wingnut Interactive. A joint venture between Microsoft Game Studios and its Bungie subsidiary -- which developed the "Halo" franchise -- New Zealand-based Wingnut's first project will be a sequel in the "Halo" series. Wingnut will also develop an original game, but Microsoft did not provide additional details.
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