The Hollywood Reporter has a very interesting piece up about the relationship between Universal and Legendary Pictures, and it turns out that behind the scenes issues may have led to Guillermo del Toro’s Pacific Rim sequel being not just delayed, but possibly scrapped altogether. It could still happen, but the director may want to find a new next project!

The first movie grossed $411 million worldwide, but cost so much to make that it wasn’t really a hit. In fact, had it not been for a strong Chinese opening, it would have flopped.

Universal already decided not co-finance Del Toro’s Crimson Peak because they’re not convinced that the R-Rated horror will earn back its budget. Based on the performance of Pacific Rim, you can understand why they’re also reluctant to be involved with that too!

Also causing some issues is the fact that Legendary are teaming with Warner Bros. for Kong: Skull Island in a bid to lead to a crossover movie with Godzilla. As it turns out, King Kong’s return to the big screen is going to feature references to Monarch, the secret government organisation that Ken Watanabe and Sally Hawkins’ characters were part of in Godzilla.

One question we’ve all had since it was revealed that Godzilla and King Kong will clash on the big screen is how that will work when the former is so much bigger than his fellow monster. Well, according to one of the trade’s sources: “Legendary is confident it can come up with a rationale to explain how Kong and Godzilla can do battle – and possibly become allies.”

Allies? Well, it sounds like we’re getting King Kong v Godzilla: Dawn of Justice then…