Multimedia publisher Activision has taken the budget of a small feature film and put it into a CD-ROM game that will rival just about anything you’ll see on screen in production value, with the release later this month of its Muppet Treasure Island.

The game follows the basic narrative of Jim Henson Productions’ Muppet Treasure Island feature film that is currently playing in movie theatres.

In fact, the original footage involving Henson’s Muppet characters was taped for the game during shooting of the movie in studio last year.

Activision shot about two weeks of footage and incorporated it into the CD-ROM through a blending of realistic live action and intricate cartooning. The result is a harmonious blend of some 45 richly illustrated backgrounds, lively graphics and strong performances by the movie’s cast.

Activision put about $3 million into the production of the CD-ROM, which includes over 20 puzzles and activities, many of them intended as instructional sequences for children.

If all the hotlinks were followed to the various activities and entertainment centers on the CD-ROM, the game could take as many as 40 hours to play.

The CD-ROM, promoted as a family entertainment product, is retailing at $39.95.