As current owner Microsoft plans to scrap it, Xbox Entertainment Studios might have found itself a new home, after reports of discussions with media giant Warner Bros.

According to The Hollywood Reporter, Xbox Entertainment Studios could become a "standalone entity" based at Warner Bros and merged with the Machinima "video game-centric YouTube network".

The development comes in the wake of Microsoft's plan to reduce its workforce by 18,000 people, as part of its efforts to refocus on core areas including computing and video gaming, as well as Windows Phone devices.

Xbox Entertainment Studios had not long ago unveiled a drama production partnership with Channel 4, before Microsoft called time on its future.

MORE: Microsoft calls time on Android-powered Nokia X devices


More after the break

[via The Hollywood Reporter]