It was only a month ago that Microsoft axed its Xbox Entertainment Studios (XES) TV division, as part of company-wide layoffs, but the studio already seems poised to crawl out of its grave. The studio is reportedly shopping for a new home, and could end up being owned by Los Angeles entertainment giant Warner Bros.
These rumblings come by way of The Hollywood Reporter, which claims that the two parties are having preliminary chats about an acquisition. According to THR, Xbox Entertainment would remain a standalone company under WB's ownership. It could potentially be merged with popular YouTube gaming network Machinima, of which Warner owns a chunk.
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THR's sources note that talks between the two groups are still in the very early stages, and an acquisition is far from guaranteed.
Xbox head Phil Spencer announced XES' demise last month, noting that the company was looking to "streamline a handful of portfolio and engineering development efforts across Xbox." While this decision all but killed Microsoft's Xbox Originals TV lineup, Spencer confirmed that documentary series Signal to Noise is still being developed. The same is true of both Halo TV shows; the Nightfall series that will ship with The Master Chief Collection game on Xbox One, as well as a standalone Halo show being created alongside developer 343 Industries.
If XES does find a new home, it could mean that previously announced TV shows based on games like Gears of War and Fable may eventually see the light of day. Microsoft still seems committed to Xbox One as an entertainment machine -- a future update will allow you to stream TV from your Xbox to your mobile device -- and the return of Xbox Entertainment could give the console enough TV content to justify these new features.
Mike Andronico is an Associate Editor at Tom's Guide. When he's not writing about games, PCs and iOS, you can usually catch him playing Street Fighter. Follow Mike @MikeAndronico and on Google+. Follow us @TomsGuide, on Facebook and on Google+