TeamXbox has the story of Montreal animation studio damnfx, tapped by Bungie to help produce some of the in-engine cinematics of Halo 3.

"Having recently worked on two large format stereoscopic films for IMAX theatres, it was refreshing to focus simply on delivering outstanding animation, while letting Bungie's Halo 3 game engine worry about lighting, rendering and compositing the shots!" said damnfx executive producer Peter Skovsbo.

damnfx's work apparently applied to about 20 minutes of Halo 3's cinematics; the game is purported to have less cinematic footage overrall compared to Halo 2, with more plot points being revealed during scripted events.