U pulls 'Ouija' out of turnaround

"Ouija" is reaching out from the beyond, as Universal has pulled the pic from turnaround by slashing the budget and assigning it to Platinum Dunes and Blumhouse to produce. Now set for a 2013 release, the project that started out as a big-budget scarer has since been scaled down to something comparable to "Paranormal Activity" or "Insidious." Michael Bay, Andrew Form and Brad Fuller will produce through Platinum Dunes, with Jason Blum producing through Blumhouse and Brian Goldner and Bennett Schneir producing for Hasbro. Plot details are being kept under wraps, but would revolve around the board game that ostensibly lets players communicate with the spirit world. McG had been on board to direct before production was halted, but he's no longer involved. Talks were held with other major studios when U put "Ouija" into turnaround last year, but it was never picked up. Its revival is a rare glimmer of hope for the partnership between Universal and Hasbro, a multi-year pact that was envisioned as a vehicle for several tentpoles -- "Stretch Armstrong," "Candyland," "Clue" -- but has only produced "Battleship." However, project won't technically fall under the U/Hasbro agreement, which was structured to handle blockbuster-sized movies like "Battleship" (and "Ouija," when it was at a higher price-point). It's also a sign of the growing partnership between Platinum Dunes and Blumhouse, already in pre-production on the low-budget thriller "Vigilandia" at Universal. U has had a good experience doing low-budget pics with Blumhouse, like "Vigilandia," which is about to wrap, and "Not Safe For Work," which just got under way. Contact Justin Kroll at justin.kroll@variety.com