A potential half-billion-dollar partnership between Netflix and Microsoft has fallen apart after Xbox executives pushed for a much higher payout, according to a report by Puck News.
Netflix originally offered $500 million to secure exclusive adaptation rights to Xbox’s extensive video game library over a seven-year span, Puck News reported. The proposal was initiated under Bela Bajaria, the streaming service’s former chief content officer. However, newly appointed Xbox Chief Executive Officer Asha Sharma and her business affairs group countered by seeking $800 million, leading Netflix to pull the proposal from consideration.
Shifting strategies in Hollywood and gaming
The collapse of negotiations coincided with major executive turnover at Netflix. Bajaria was recently dismissed and replaced by former Disney executive Peter Rice, while film division chief Dan Lin was also let go, Yahoo reported. With Bajaria gone and Xbox holding out for a substantially higher sum, the exclusivity agreement was scrapped entirely.
In response to the report, Xbox indicated that its relationship with the streaming service remains intact despite the failed mega-deal.
“Netflix is a valued partner and we are excited for the forthcoming release of our Minecraft and Diablo animated series together, among other adaptations,” Xbox said in a statement to Puck News, adding that it has seen “record-breaking interest” in its creative properties.
Rather than committing its entire portfolio to a single entertainment giant, Xbox is now pursuing smaller licensing arrangements across several different production companies, according to Puck News. Microsoft also recently established “XP,” a specialized internal department focused on developing its intellectual property across film and television, Kotaku reported.
The race to bring game franchises to screens
Hollywood studios have increasingly turned to video game adaptations to attract broad audiences and drive interest back toward underlying software franchises. Recent adaptations across the sector have generated both major triumphs and mixed outcomes:
- Warner Bros. saw massive commercial returns with its Minecraft movie adaptation, while Amazon achieved critical and viewer acclaim with its Fallout television series.
- HBO found major success with its adaptation of The Last of Us, and Illumination scored box office numbers with its Super Mario films.
- Other attempts have experienced a rockier reception, including Paramount’s Halo series, which failed to generate equivalent enthusiasm, Kotaku reported.
For Netflix, losing out on a broader Xbox agreement does not mean a lack of gaming content. The streaming platform has previously adapted franchises such as Castlevania, Cyberpunk, League of Legends and The Witcher, and it holds streaming rights for an upcoming live-action Zelda project next year, Kotaku reported.
Neither Microsoft nor Netflix has publicly commented on future franchise negotiations beyond the previously announced animated projects.
