Origin of E.T.
While Baker worked on the aliens, Spielberg was having second thoughts about Night Skies. "I might have taken leave of my senses. Throughout Raiders, I was in between killing Nazis and blowing up flying wings and having Harrison Ford in all this high serialized adventure, I was sitting there in the middle of Tunisia, scratching my head and saying, 'I've got to get back to the tranquillity, or at least the spirituality, of Close Encounters.'" While on the set of Raiders, Spielberg read the Night Skies script to Melissa Mathison (who was there to see her then-boyfriend and future husband Harrison Ford) and she cried after hearing it because "the idea of an alien creature who was benevolent, tender, emotional and sweet... and the idea of the creature's striking up a relationship with a child who came from a broken home was very affecting".
When Spielberg came back from Tunisia and Hawaii (where the opening of Raiders of the Lost Ark was filmed), he eagerly closed the door on Night Skies and began planning the film Mathison had dubbed ET and Me, but would in only a year and half be known to audiences all over the world as E.T. the Extra-Terrestrial. Rick Baker, who had spent $700,000 on unused Night Skies designs, models and animatronics, had a huge fight with Spielberg, which led to Carlo Rambaldi (who had previously done alien creature designs for Close Encounters) doing creature designs for E.T.. John P. Veitch (then-president of Columbia's world-wide productions) and Frank Price (then president of Columbia) were also unhappy with the emergence of E.T. and did not want to make "a wimpy Walt Disney movie". In February 1981 (six months after Columbia's desire for a Close Encounters follow-up had been fulfilled by Close Encounters of the Third Kind: The Special Edition), Columbia put the Night Skies/E.T. project in turnaround. Sid Sheinberg (Spielberg's long-time friend and then-president of MCA, the then-parent company of Universal Studios) bought the Night Skies/E.T. project from Columbia, repaying them the $1 million that had been used thus far to develop the project and making a deal in which Columbia would retain 5% of the film's net profits (Veitch later said that "I think that year we made more on that picture than we did on any of our films).
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