The movie eventually fell apart due to budget issues. The studio didn’t want to spend $200 million on an R-rated video game adaptation. At this point it doesn’t seem like the movie will ever happen.
The studio wanted Gore to make the film for only $80 million, and he said no. He stayed on as a producer while the studio brought in director Juan Carlos Fresnadillo (28 Weeks Later) to take it on. Apparently BioShock creator Ken Levine stepped in and put a stop to the production.