Disney won't be going forward with the Oblivion adaptation that has been nurtured by Tron: Legacy director Joseph Kosinski. It's a bit strange to call the project an "adaptation" seeing as how the source material and the movie were being developed on parallel paths.

Regardless of what it should be called, Disney doesn't want to do it. Why they don't want to do it remains a bit of a mystery, as the project had undergone a draft by The Departed screenwriter William Monahan and was considered a high priority by Disney the last they spoke of it to the trades. Since the project was tracking well, it's a safe bet that external pressures or a noteworthy substitute are waiting in the wings to fill the void left by this project.

As for Oblivion, Kosinski is free to shop it around where he would like at this point, so don't be surprised to find a number of studios clamoring to get after this project. Unless Disney is keeping quiet about some shortcoming of the project, which rarely happens. The "keeping quiet" part, not the shortcomings. (Variety)