According to various sites, Jerry Bruckheimer’s (Pirates of the Carribean, King Arthur) production company is in negotiations to buy the film rights to Prince of Persia: The Sands of Time. The creator of the original Prince of Persia game, Jordan Mechner, is already working on a screenplay. This isn’t as alarming as it sounds, as in the years between the original game and the recent Sands of Time Mechner has been making his living as a screenwriter and filmmaker.

Here’re a couple of links, but if you Google “Bruckheimer Prince of Persia” you’ll find plenty more:
Bruckheimer eyes Prince of Persia
Bruckheimer Films buys Prince of Persia film rights.