It appears that Microsoft is shopping around its Xbox Entertainment Studios, an American television and movie studios opened by Microsoft in order to create “interactive television content” for Xbox Live.

According to The Hollywood Reporter, Warner and Xbox have held preliminary talks to form a deal which could merge Microsoft’s Entertainment Studios and Warner’s Machinima property. If a deal is struck, Warner will take on a considerable amount of experienced development executives and a number of projects that are in mid-development.

Microsoft’s Phil Spencer announced in July that the firm would be closing Xbox Entertainment Studios is the coming months, but still had several projects in the works. The live action Halo series was confirmed as being safe and still in production, as is the Quantum Break series.

A spokesperson for Warner stated that the firm is “constantly having preliminary discussions regarding business opportunities with numerous companies at any given time… a conversation is just that – a conversation.”

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