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The companies reportedly have signed an agreement to promote Xbox One on network videos, but questions abound over their tactics.
Online film entertainment network provider Machinima.com raises funding from MK Capital and other investors.
Los Angeles' Machine Project hosted a standing-room-only screening of machinima films.
Disney acquisition talks with YouTube programmer Maker Studios could value it at $500 million or more, according to a report by Recode.
Microsoft's console is down to £410 at online retailer Zavvi, a saving of £20, while the company has apparently been paying for positive mentions on YouTube.
Shareholders in YouTube programmer Maker Studios will get a total consideration of $500 million, and can earn up to $450 million by hitting performance targets.
Wipe away the memories of that awful 1994 "Street Fighter" movie with a live-action Web series that punches and powers its way into your gaming heart.
Twitch and Titanfall explode onto the Microsoft Xbox One to share your gameplay when you say, "Xbox, broadcast."