Microsoft announced on Wednesday that it is teaming up with renowned movie director Peter Jackson to create a new game studio for its Xbox game console.

The Redmond Wash.-based firm, along side Jackson and Academy Award-winning screenwriter Fran Walsh, will merge to create Wingnut Interactive, a studio that will create games exclusively for Xbox and Xbox 360 platforms.

My vision, together with Microsoft Game Studios, is to push the boundaries of game development and the future of interactive entertainment, Jackson said in a statement.

Jackson, who directed The Lord of the Rings, will work with the studio in a collaborative effort with Bungie Studios to co-create the next chapter in Microsoft's Halo franchise.

Microsoft Xbox