According to a report on tech blog Recode (by way of The Verge), Xbox Entertainment Studios -- the department that had been developing TV content for online streaming on Xbox platforms -- is due to shutdown only a little over a year after it was first introduced to the world at E3 2013.

Xbox Entertainment Studios fit with Microsoft’s plan to dominate the living room through its game console. But the unit has struggled to deliver on its promise.

Sources paint a picture of a disorganized studio that struggled to close deals and lacked a fully fleshed-out business model. This inability to execute has turned off potential studio partners, they say, complicating the process of securing premium content.

The Verge follows up the article with an internal memo allegedly from Microsoft Studios head Phil Spencer, that explains that the department will be gradually wound down, but that projects such as the Stephen Speilberg produced Halo TV series will still be completed.

I am pleased that Nancy, Jordan and members of the XES team remain committed to new, original programming already in production like the upcoming documentary series ‘Signal to Noise’ whose first installment takes on the rise and fall of gaming icon Atari and of course, the upcoming game franchise series ‘Halo: Nightfall,’ and the ‘Halo’ Television series which will continue as planned with 343 Industries. Xbox will continue to support and deliver interactive sports content like ‘NFL on Xbox,’ and we will continue to enhance our entertainment offering on console by innovating the TV experience through the monthly console updates.

The development goes some way to explain why almost all mention of TV content had been completely absent from Microsoft's E3 2014 media briefing.