The movie won't be happening, at least in the foreseeable future, according to producer Michael De Luca.

He told -->Collider: "I don't think it's going to move forward because I got the sense that there may not be enough of a coordinated will at this point on the side of certain parties to see a movie get made."

He explained that Konami is concerned about a duff movie hurting the image of the game series. "The franchise being as big as it is kind of helps the movie. I'm not sure the movie does the same thing for the game."

De Luca added: "The videogame companies are very protective of their property and there are certain things a studio requires freedom-wise to market and distribute a movie effectively in a global marketplace and sometimes getting those two things to match up is really hard -- it was just kind of impossible to get the agendas to match up."
So that seems to be that for a MGS film for the time-being, but if Prince of Persia or another game adaptation makes money this year, then perhaps Konami might have a change of heart.