There was a unified sigh across the tech sphere when it was announced that Microsoft was going to dump Xbox Entertainment Studios.  It appears as though that news, sad though it was, is not the end of the story.   It has now come to light that Microsoft may have other plans for the studio.

According to information from the Hollywood Reporter, the studio is now looking for a buyer.  And it appears as thought movie giants, Warner Bros. is at the front of the line-up. Sources have said that it is likely Warner Bros. would want to combine the studio with Machinima.  This makes sense as Warner Bros. purchased a stake in the struggling gaming entertainment company earlier this year and would now be looking work out that investment.

HALO: Nightfall to be completed?

Will we ever see HALO: NIGHTFALL?

But as usual, this information could well be rumour, as a Warner Bros. spokesperson was quick to crush any rumours of a merger.  The spokesperson said that the company is always talking of new deals and that “a conversation is just that – a conversation.”

The recent closure of the studio was part of Microsoft’s CEO Satya Nadella’s effort to cut off the tech giant’s weaker areas.  This was done amid massive layoffs of up to 18,000 people.  Xbox Entertainment Studios launched in 2012 and was created to rival services such as Netflix, with original TV content that was specifically designed for Xbox 360 and Xbox One consoles.

Back then, Nancy Tellem who spearheads the studio, apparently vowed to stay on board to see the completion of original programming that was already in production.  Microsoft has said that would include a live-action Halo series that was to be produced by silver screen legend, Steven Spielberg.  The Other projects include a live action digital series, which is a prequel story, called Halo: Nightfall, that was to be exec produced by another giant of the industry, Ridley Scott.There was also a documentary charting the rise and fall of games manufacturer Atari, called Signal to Noise.  It has been said that all three of these titles would still be completed.

Microsoft closed down the TV production unit last month, although rumour has it that Warner Bros. is in talks to acquire it from them.

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[Image via halo.wikia]