The production company has plans to development games and other interactive entertainment based on the films it backs, according to Variety. It already has video game movie adaptations based on Epic Games Gears of War and Blizzard Entertainment's Warcraft properties, as well as easily adapted films like Clash of the Titans and Kung Fu in the works.

Legendary was reported to be in talks with Epic Games late last year to acquire the Unreal Engine developer.

With Brash Entertainment having collapsed last year, screwing developers over left and right, itself reported to have fostered a deal for a Clash of the Titans video game, an internally developed game based on that fantasy epic seems likely to fall under Legendary's new digital venture. And with another Batman film a foregone conclusion, we'd expect Legendary to pursue an adaptation of that as well, hopefully with less disastrous results than Pandemic's stab at The Dark Knight.

Legendary launches digital arm [Variety]

Of course, just being in discussions doesn't guarantee that this is a done deal. But the influence of Legendary Chairman Thomas Tull on the deal is telling. Tull recently quit the board of movie-focused Brash Entertainment, so it's clear he's interested in getting into the games business. The statement Epic released to Variety is hardly a "no comment", either:

We have publicly announced that Epic and Legendary are partnering on the "Gears of War" movie. We’re very excited about that project and have the highest regard for Thomas Tull and his organization.

Hopefully now that the talks are in the open we'll hear more about it in the coming days.

Legendary Films in talks to buy Epic Games [Variety]

In yet another move to capitalize on the recent rise of video game popularity, Blizzplanet is reporting that the Legendary Pictures website is listing a Diablo Movie as "in development" right along side the Clash of the Titans remake and a World of Warcraft film. More details on the project are expected to come at the now sold out BlizzCon in August.

I tried Diablo out years ago and it was my first experience playing a game online with other people. I hate to say it, but it left a pretty bad taste in my mouth about playing games with strangers. The other players were rude and nasty and kept begging me for money and weapons. If I wanted to walk the streets and be bothered for money by aggressive panhandlers, I'd move back to San Francisco. Flynn De Marco

Diablo The Movie by Legendary Pictures Confirmed [Blizzplanet]