Warner Bros. in early talks to buy Xbox Entertainment Studios

According to reports, the studio would likely merge with Machinima

Microsoft discarded its TV production unit back in July, although word is that Warner Bros. are in talks to take it off their hands.

With so many exciting TV programmes in the pipeline, the tech world unanimously sighed when the news broke that Microsoft was going to scrap Xbox Entertainment Studios.

Well now it seems like Microsoft has other plans, according to the Hollywood Reporter the studio is looking for a buyer with Warner Bros. being the frontrunner for the purchase.

Sources say Warner Bros. would likely want to merge the studio with Machinima, the struggling gaming entertainment company that it bought a stake in this year.

Although a Warner Bros. spokesperson was quick to squash any rumours of a merger, saying that the company is always talking of new deals and that "a conversation is just that - a conversation."

The closure was part of CEO Satya Nadella's effort to trim the Microsoft's weak areas, amid massive layoffs of up to 18,000 people.

The studio launched in 2012 to rival services like Netflix with original TV content designed for Xbox 360 and Xbox One consoles.

At the time, Nancy Tellem who spearheads the studio vowed to stay to see the completion of original programming already in production.

Microsoft said that includes a live-action Halo series produced by Steven Spielberg.

Other projects are the live action digital series Halo: Nightfall, a prequel story exec produced by Ridley Scott and the documentary franchise Signal to Noise.