What does this mean?
Firstly, it means that they are DAMN serious about making "The Hobbit" in 3D or they would not waste the serious executive / development time meeting about it.
Secondly, it means that while "The Hobbit" will be in 3D, it seems that there is an issue about whether to re-release the original trilogy in 3D as well. This was always the weakest bit of news from their camp, but hopefully it prevails. There is a rather large cost associated with converting the movies and doing them the justice they deserve. 2D afficionados will still have there original masterpieces of course.
Personally I think they are crazy not to do it because of the nature of the fans - they are as strong as or stronger than Star Wars fans and Lucas is doing just that - converting his franchise to 3D. Kinda hints at the future and where the money lies. We still think this gets done.
Thirdly, while Beowulf was a success it has lead to a misconception in the marketplace that all 3D movies are now going to be "cartoonish". Nothing could be further from the truth with Live Action and they will be talking about how to combat this image, whether it be through several footage releases of various scenes (like what AVP2 did to great appeal - releasing the first 5 minutes of the movie) or something else.
This is awesome news that PJ & Co. are moving toward the ideal genesis of "The Hobbit" in 3D and that they are gearing up for another long flight into film making history. There is no one else I would want in charge Peter.
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