Earlier this year, Microsoft stunned industry observers by shutting down Xbox Entertainment Studios and ordering massive layoffs despite an impressive programming lineup that included Steven Spielberg’s “Halo” TV series.
While the “Halo” series is still going forward, there’s now a chance that Xbox Entertainment Studios could also find new life. According to The Hollywood Reporter, XES is in early talks with Warner Bros. that would potentially merge XES with the popular Youtube video game channel, Machinima under the umbrella of Warner Brothers. Machinima received an $18 million dollar in financing from Warner Bros. earlier this year.
However, the story characterizes the potential blockbuster deal as being “unlikely” to happen. A Warner Bros. spokeswoman didn’t confirm that the specific negotiations are happening and she added that “a conversation is just that — a conversation.”
Related: Layoffs: Microsoft Letting Thousands Go, Xbox Division Affected
Even if the deal with Warner Bros. doesn’t go through, this could indicate that Xbox is actively looking to shop XES to another buyer as a way of keeping it alive. A partnership with Warner Bros. would potentially be beneficial for both companies by giving Warner Bros. a foothold to the Xbox Live audience and a way to fully utilize Machinima as a programming platform. For XES, the potential merger could allow the company to once again fully invest in creating original programming for Xbox Live.
Showtime is still reportedly in negotiations to produce and broadcast the “Halo” TV series in conjunction with XES. However, there have been no recent updates about that deal.
