Lost Planet, which was released in Japan in late 2006 and North America in early 2007, has sold over 2 million units. A sequel is believed to be in the works. The title revolves around an expedition to an ice planet that harbors an energy source with the potential to save mankind.

Capcom is becoming an increasingly active participant in movie transfers of its vidgame hits. The publisher so far has had "Resident Evil" turned into three films, with a fourth in the works. It is currently partnered with Hyde Park Entertainment on a live action version of its game "Street Fighter" and has a feature version of "Onimusha" at Paramount.

The financing strategy of the "Lost Planet" film is still being finalized, but Capcom is expected to contribute coin, as it is on "Street Fighter."

WB will have worldwide distribution rights on "Lost Planet."

Avi Arad, Ari Arad and Steven Paul will produce through Seaside Entertainment, the shingle they formed to produce fantasy fare. The Seaside trio most recently made a DreamWorks deal for a 3-D live action feature adaptation of the futuristic Japanese manga classic "Ghost in the Shell," which is a passion project of Steven Spielberg.

Hayter, who is coming off the Zack Snyder-directed WB movie "Watchmen," has had a long association with Avi Arad from the days when the producer ran the film arm of Marvel Comics. Hayter scripted many early drafts of superhero movies for Arad, but is best known for his script work on "X-Men" and "X2."