Hope could yet remain for Microsoft's ill-fated Xbox Entertainment Studios.
As part of its restructuring announcement last month the platform holder revealed that the Santa Monica studio, which was tasked with creating original TV programming for Xbox, was to be closed.
But The Hollywood Reporter reveals that talks have taken place with Warner Bros about a possible stand-alone entity being established at the studio, with Warner possibly merging the outfit with Machinima.
Indeed, Xbox boss Phil Spencer has already indicated that key Xbox Entertainment Studios are remaining on board to oversee existing productions such as Halo: Nightfall and The Halo Channel.
The site adds that the talks are only preliminary and could well not result in anything, but do at least form a statement of intent from Microsoft.
Warner is constantly having preliminary discussions regarding business opportunities with numerous companies at any given time,” a spokesperson for the company said. A conversation is just that — a conversation.”
Xbox Entertainment Studios was founded in 2012 by former Microsoft CEO Steve Ballmer.