While it was first announced in July during Microsoft's first wave of its planned 18,000 employee layoffs, the company finally closed the doors on its Santa Monica, California-based Xbox Entertainment Studios today. It was originally launched in 2012 to bring new television content to the Xbox One and other Microsoft outlets.
At one point this summer, it was thought that XES might survive in some form, as Microsoft was actively shopping it around to some Hollywood studios, including Warner Bros. However, those plans never materialized and now XES's leader Nancy Tellem and its executive VP Jordan Levin are no longer under Microsoft's employ, along with a few other XES employees who were kept to work on some remaining TV projects.
The live action digital series Halo: Nightfall will still be released by Microsoft as part of Halo: The Master Chief Collection, and the proposed Halo television series, first announced in May 2013 and executive produced by Steven Spielberg, is also still in development, according to a Microsoft spokesperson. The company will also still release two XES produced documentaries, Atari: Game Over and The Thread.
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Source: Hollywood Reporter