We have some bads news. Director Gore Verbinski has stepped down from directing the BioShock movie for a possible forth installment into the Pirates of the Carribbean movie series, which isn’t all bad news because Pirates of the Carribbean is awesome, and it looks like Juan Carlos Fresnadillo has stepped in as director – SlashFilm reports.

Verbinski will remain involved in the project, but only as producer. However, as we reported back in April, Universal has shut down production of the movie because of the film’s ballooning budget that continues to grow. Also for some reworking of the script, and to explore possible locations outside the country offering financial incentives.

With a pool of talented name brand filmmakers hoping to helm such a project (Guillermo del Toro has been outspoken), its amazing that Universal went with Fresnadillo in the end, who’s best known as the writer/director of 28 Weeks Later.

It looks like this big budget movie may have been too big for its budget. Announced last May, the movie was in pre-production by Universal and 2K with Pirates of the Caribbean director, Gore Verbinski attached to helm the film along with John Logan, responsible for Gladiator and The Aviator, planning the script.

According to a spokesperson from Universal, the film will remain alive in an extended pre-production “so the studio and production can take a look at possible alternate shooting locations, available tax credits, foreign exchange rates and other elements that might help us make the film at a responsible budget.”

“No plug has been pulled on BioShock,” reps told Kotaku. “Universal remains committed to making the project and Gore absolutely remains attached as director.”

The movie was announced to have a budget at about $160 million, which, if you remember, rocked the internet with the announcement.

[Universal Puts BioShock Movie On Hold On Budget Concerns via Kotaku]