According to a new report, Fox has signed a new deal with Microsoft to handle merchandising efforts for the company's critical hit Halo franchise, including books, apparel and collectible merchandise, to coincide with the launch of Halo 3. The new report from entertainment publication Variety, says that the deal follows earlier licensing agreements for both Perfect Dark Zero and Kameo, which coincided with the Xbox 360 launch. The deal reportedly will cover a variety of products, including books, clothing, and collectibles, with Fox VP of licensing Elie Dekel adding that products will continue to be released in the years following the launch of Halo 3. News of the licensing agreement follows Fox backing out of the production of a film version of the franchise last October, though producer Peter Jackson has more recently said there continues to be interest in the project. Variety says Fox is in "various stages of discussion with several dozen licenses" and will be talking to more at this week's Toy Fair. In related news, McFarlane Toys has announced that it has signed a deal with Microsoft to release a number of Halo action figures in Spring 2008, including Master Chief, Brute Chieftain, Jackal Sniper, a Grunt 2-Pack, and Cortana, as well as Warthog, Chopper and Ghost vehicles. Said CEO Todd McFarlane, "Halo is one of the top video game franchises of all time. We get to put our company's touch on a sci-fi epic that is visually and thematically stunning. Through its gameplay, Halo has been able to attract a very large and loyal audience, most of whom happen to be our customers as well, which makes this an excellent partnership."