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Last month it was revealed that Microsoft were to shutter Xbox Entertainment Studios due to a shift in focus on the Xbox One and the gaming side of things rather than exclusive TV and Film to make the Xbox One your every day entertainment system. Though some original programming is still scheduled to release later this year, the future of the studio was unknown – until now. According to reports Warner Bros. have been speaking with Micorosoft about a possible buy-out.

The Hollywood Reporter are reporting that Microsoft is looking to sell the Xbox Entertainment Studio to Warner Bros. details of the deal are unclear right now but the publication are reporting that sources are saying that Microsoft is hoping to keep the Xbox Entertainment Studio a separate stand-alone entity within the company. There’s also words that Warner, if the deal goes through, could merge Xbox Entertainment Studios with Machinima.

In a statement a Warner Bros. spokeswoman said that the studio is “constantly having preliminary discussions regarding business opportunities with numerous companies at any given time. A conversation is just that — a conversation.”

It’d be interesting to see what Warner Bros. would do with this studio, whether they’d continue Microsoft’s original vision for the studio or turn it into something that expands outside of the Xbox brand.

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