Xbox TV studio may yet live under Machinima's roof at Warner Bros.

The executives over at Microsoft recently cut a huge number of jobs. The Xbox Entertainment Studios television production company was a part of that, but the division may continue operating if a rumored deal goes through.

Microsoft wants to sell Xbox Entertainment Studios, which was going to create original video content for Xbox Live. Warner Bros. is looking into potentially picking up the studio, according to a report from The Hollywood Reporter. The two parties aren’t providing details at this time, but the rumor claims that the Xbox video division would merge with Warner’s existing game-video production company, Machinima. Game-related video is a big business, and if Microsoft doesn’t want it, then Warner Bros. is potentially seeing dollar signs.