Microsoft announced some very big changes last month, including layoffs, and the eventual shutdown of Xbox Entertainment Studios, the division that was tasked with developing original shows for the company’s new gaming console. If new reports are to be believed its likely that XES might find a new home. Apparently Xbox Entertainment Studios is looking for a buyer and has already participated in preliminary talks with Hollywood giant Warner Bros.

Even though the closure of XES has been announced, Microsoft’s Xbox boss Phil Spencer made it clear that Halo: Nightfall and Steven Spielberg’s Halo project will continue under 343 Industries.

If this does happen that XES gets acquired by Warner Bros., The Hollywood Reporter claims that Warner would then seek to merge XES with Machinima, a video game focused YouTube network in which it already has a stake.

However sources claim that talks are in preliminary stages right now and its too soon to say if any agreement will be reached. Its possible that XES may look towards other suitors as well if it isn’t able to get a deal with Warner Bros. Whatever the case may be, such a deal would breathe new life in XES, which is destined for closure under Microsoft.

We’ll keep a keen eye on this, perhaps Xbox Entertainment Studios would be fortunate enough to find a new home.

Filed in General. Read more about Microsoft and Xbox.

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