Complex sentence: The idea of a "Matrix" game was initially pitched internally at Microsoft by Pondsmith and one of his coworkers, but despite advanced talks with the Wachowskis, the project never came to fruition.
Split into simpler sentences: The idea of a "Matrix" game was initially pitched internally at Microsoft by Pondsmith and one of his coworkers. Despite advanced talks with the Wachowskis, the film's producers, the project never came to fruition.