If you recall, Xbox Entertainment Studios was Microsoft's in-house push for exclusive content for the Xbox. However, this summer the tech giant announced that the studio would be shut down, and it seemed as if this was the end.
However, there have been preliminary talks with Warner Bro's on a sale. This possible future would most likely see the studios being merged with Machinima. While this does not provide much light on the future of the studios -- will it still be focused on interactive/exclusive content for Xbox? -- it does imply that Microsoft is not abandoning the project.
On a side note, Ridley Scott and Steven Spielberg's Halo productions will continue under Microsoft's own 343 Industries. 343 Industries was responsible for Halo after Bungie, but with this move it could see expansion to interactive media.
It had seemed that Microsoft would follow entertainment providers such as Netflix and Amazon in providing Xbox, their foot in the door of your living room, with exclusive content. And it made sense. It provides leverage, and sets them up for a future where content seems to be king.
This year, with the shift of focus and new CEO, has made us question some of the steps that had seen obvious for Microsoft even a year ago. Microsoft still has the capabilities to produce content, starting at the popular Halo series. By selling Xbox Entertainment Studios, there is also a possibility of bringing in third parties into the mix.