UPDATE: Jackson may be near to returning to Middle Earth to produce, write, and direct two more back-to-back adventures, this time in the third dimension! The Wrap is reporting that the director is close to finalizing a deal with MGM and Warner Bros. with a green light for go picture being potentially turned on as soon as the end of the week. After being in production Mordor (that's production hell in the LORD OF THE RINGS universe), both studios are more than anxious to get this show on the road...especially MGM who you may have heard has had a bit of financial trouble lately.

Consider the facts: Both HOBBIT films have a budget rounding out at the $400 million mark with checks already written for $30 million - specifically for the film's sets which have already been built and the cast and crew which has mostly been hired. Then there's the impending release date for the first film being set for December 19, 2012. So, needless to say, a few parties stand to lose or gain quite a bit of money on this deal depending on which way it goes.

Yet, there are a few factors that have made this process slow to the finish line and could continue to move it at that pace. For one, the deal between Warner Bros. and MGM isn't exactly forged from the same solid gold as "my precious" (which you can read all about HERE).

Let the wait and see game begin. What? It started already? Okay, then let the wait and see game continue! Stay tuned for more updates on THE HOBBIT. - James Wallace

Read on for more news on the film's recent union problems

So this is what it has come to.

After the recent union fiasco that spanned all of last week, it appears as though we may actually get to see THE HOBBIT before we die. However, it may be in a dimension we never expected.

In the face of previous reports denying the use of 3D in the hotly anticipated film, the NY Times is reporting that 3D has become a topic of discussion, which makes a bit of sense as the primary detractor originally being then-director Guillermo Del Toro. 

That said, the film apparently has a price tag of right around $400 million, so you can’t really blame WB, New Line, and MGM for trying to push the format back onto the table. As far as the union problems go, after seeing Peter Jackson and his studio backers threatening to take the film out of New Zealand, it looks like the nation’s government is trying to step in and help keep it there. So it appears as though we may be back on track.

But at this point, I simply don’t care. All of this news is fine and interesting, particularly the 3D which could actually be used really well in a narrative like this, but until we get solid confirmation that the film is actually going to be made, I will be reserving all hope and optimism. I don’t have the biggest love for the source material, but I do really dig Peter Jackson, so at this point, it will be a wait and see. With no director or cast attached to the film, it remains to be seen if this film will actually ever happen. What do you think?