At first it was thought that Legendary’s move to Universal would mean that the studio would be taking their properties to another distributor. But recent developments have shown that Legendary may not have completely severed their ties with WB as first thought. But Kong: Skull Island‘s move from Universal over to Warner Bros. looks to be having an effect on other tentpole properties that were under the WB and Legendary partnership.

According to a new report, one of those films that might be affected is Pacific Rim 2, which would have been distributed by Universal at the time. But now it is looking like production of that film may be delayed, or worse it just may be cancelled all together. More on the story below.

San Diego Comic-Con attendees were fully immersed in the interactive world of Guillermo del Toro at Legendary Pictures booth on Wednesday night. Hot off last month’s announcement of the official release date for Pacific Rim 2 (and the news of a Pacific Rim animated series), Legendary and filmmaker Guillermo del Toro have been working with tech developer Oculus VR on a first-person experience that allows fans to step into the cockpit one of the film’s Jaegers and engage in Kaiju battle.

I previewed a sneak peek of this experience myself on one of Legendary’s custom-built simulator rigs, as the Oculus Rift goggles were placed over my eyes and headphones over my ears. My field of vision filled with the interior of the cockpit of the Gipsy Danger as my copilot signaled me to prepare for neural interface. A quick mind warp and we were soon underwater, face-to-face with the Category III Kaiju known as Knifehead. Plasma cannon blasts were ineffective as Knifey soon struck the Jaeger, disabling one of its arms. A couple more strikes and soon Knifehead’s knife head was breaching the cockpit and directly in my face, bringing the simulation to an end.

Fans of Pacific Rim were elated by the recent announcement that Pacific Rim 2 is officially on the way. But before director Guillermo del Toro jumps into the massive sequel, it appears he’ll be taking on a small project first.

According to del Toro, who’s currently in post-production on his upcoming horror flick Crimson Peak, he’ll next begin working on a much smaller black and white movie before eventually getting to work on Pacific Rim 2.

Continue reading for more info, including who might star.

Whether a sequel to Guillermo del Toro‘s 2013 giant robots vs. giant monsters flick Pacific Rim would be made or not was unknown for a time. The movie cost $190 million to make, but, for reasons beyond human understanding, only made $101.8 million here in the States.

Thankfully the movie still did strong overseas, scoring $111.9 million in China and $309.2 million overall, bringing its worldwide grand total to $411 million. Because of this, Pacific Rim 2 has been confirmed and an official release date has been locked in. Also announced is the development of an animated series set in the Pacific Rim world and the continuation of the comic book series.

Continue below to see a video of del Toro making the announcement.

Thanks in most part to the Chinese box office, a sequel to Guillermo del Toro‘s Pacific Rim may actually happen. The film did gross $400 million worldwide, but had a weak $100 million effort in the U.S. Still a $300 overseas box office is nothing to scoff at, and with the film hitting Blu-ray and DVD shelves this week, there could be more of a push to get a sequel to get made.

While the Legendary Pictures and Warner Brothers Studio partnership may be over, del Toro knows what fans want a sequel to happen. So in anticipation that he does get the greenlight, del Toro has says that he and Travis Beacham are writing the script to the sequel.