Sources claim that Ubisoft's demanded a ridiculous level of creative input, leaving the project unlikely to ever get its feet off the ground.
"As a director, even Steven Spielberg cannot get this kind of deal," an unnamed source revealed.
According to Vulture, the deal grants Ubisoft approval over every facet of movie's production, including casting, budget, script and release date.
"The whole Ubisoft/Sony deal is a waste of ink, paper and time," added an unnamed Hollywood talent agency. "The level of control Sony gave up means, effectively, that Assassin's Creed will never - and I mean never - get made."
Studios such as Dreamworks, Universal and Warner Bros all supposedly turned down the rights due to Ubisoft's demands.
One studio chief explained: "They want to be able to pull the plug on the whole movie's development if they decide to. It's ridiculous."
"It's [Ubisoft's] billion-dollar brand, so I get that they're protective," another executive added, "But they're not moviemakers, and the only way to make sure it's a bad movie is to undervalue what movie studios do - and this is a deal that totally undervalues what movie studios do."
Ubisoft believes that its previous movie collaboration, Prince Of Persia, bombed because it was not given enough control.
"It begs the question," pondered one studio boss, "If they're so afraid of what will happen to their franchises, why make a movie at all?"