IESB.net (thanks Voodoo Extreme) reports that the status of the planned Gears of War movie is in doubt:

I clarified with my source, the status of Gears of War. Yes, Chud, Len Wiseman is still on the project currently, but it doesn't look good, due to the budget concerns the studio has, New Line will most likely not be moving forward on this film.

In other cancelled movies based on games news, Neill Blomkamp talks Halo promos, film's demise on Joystiq confirms that recent Halo promo videos have nothing to do with the dead Halo film project, which, like Generalissimo Francisco Franco, is still dead.