Back in January, we brought you the news about director McG (Terminator Salvation) entering into formal negotiations to direct the big-screen adaptation of the Hasbro toy Ouija for Universal Pictures and Michael Bay‘s producti0n company, Platinum Dunes. is slated to hit theaters on November 9th, 2012. The story penned by TRON: Legacy writers, Edward Kitsis and Adam Horowitz is described as a four-quadrant supernatural adventure centering around a family, with influences from The Mummy and Indiana Jones.

Now, NYMag is reporting that Universal Pictures has now dropped the project completely. Bay and McG are said to be shopping the project to other studios, but even Paramount Pictures, the studio behind Bay’s Transformers franchise has already passed on the project. Universal is reportedly tightening their budget and Ouija was too expensive to produce.