Microsoft discussing Xbox Entertainment Studios sale with Warner Bros. - report

Picture this.

Microsoft is in talks to sell its Xbox Entertainment Studios division to Warner Bros., a new report suggests.

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Preliminary discussions between the two companies have centred on the idea of merging XES with Machinima, of which Warner Bros. owns a stake (thanks, The Hollywood Reporter).

Machinima previously partnered with Xbox to distribute Halo 4 spin-off Forward Unto Dawn.

XES was shuttered by Xbox boss Phil Spencer back in July as part of Microsoft's plan to cut 18,000 jobs before the end of the year.

But many of the company's existing slate of programming will still be made - most notably this year's Halo: Nightfall and the upcoming Halo live-action TV series.

Future projects would have included a US version of Swedish sci-fi series Humans and a possible remake of the classic BBC series Blake's 7.

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