Is Ridley Scott's Alien prequel falling apart?

Is Ridley Scott's Alien prequel falling apart?

Fans everywhere rejoiced when Ridley Scott came aboard Fox's origin story for its long-running Alien franchise—and clapped a bit when Lost's Damon Lindelof agreed to rewrite the script. But are budgetary concerns going to derail it?
Apparently, Scott's vision for the prequel—which he has described as "really tough, really nasty"—demands that he spend $250 million to make a film that he wants to be a hard R.
Fox, on the other hand, is looking for a PG-13 movie that would cost far, far less.
Scott is an Oscar-winning Hollywood powerhouse, and, by and large, he gets his way. But if Fox is unwilling to loosen the purse strings—or if Scott is unwilling to compromise—it's entirely possible we'll never get to see Alien: Year One. (Or whatever they'll call it.)