A reported $800 million deal between Xbox and Netflix to bring popular video game franchises to film and television has fallen through after the two companies failed to agree on a price.
According to a report by Puck, Netflix offered Microsoft $500 million for seven years of exclusive rights to adapt Xbox-owned intellectual property into movies and television shows. However, Xbox CEO Asha Sharma and her business affairs team reportedly countered with a demand for $800 million.
The negotiations ultimately collapsed, leaving Netflix without the proposed exclusive deal and prompting Xbox to explore smaller partnerships with multiple entertainment companies instead.
The proposed agreement would have given Netflix exclusive access to a broad range of Xbox gaming franchises for screen adaptations over seven years.
However, the reported $300 million difference between Netflix’s offer and Xbox’s asking price proved to be a major obstacle. The proposal was later taken off the table following the departure of Netflix content chief Bela Bajaria, according to reports.
Neither company has publicly confirmed the specific financial terms of the negotiations. Netflix declined to comment, while Xbox issued a statement highlighting the strong interest in its intellectual property and its ongoing relationship with the streaming platform.
Rather than committing its wider gaming portfolio to one streaming service, Xbox is reportedly shifting towards smaller deals with multiple entertainment partners.
The strategy could give Microsoft greater flexibility to negotiate separate agreements for different franchises, potentially allowing individual games to be adapted by studios and platforms best suited to their audiences.
Xbox owns or controls several well-known gaming properties, including Halo, Gears of War and Minecraft. These franchises offer opportunities to reach audiences beyond traditional video game players.
A multi-partner strategy could also help Xbox avoid tying up a broad range of its intellectual property under one exclusive agreement for several years.
Despite the reported breakdown in negotiations, the relationship between Xbox and Netflix is not over. In its statement to Puck, Xbox described Netflix as a valued partner and pointed to upcoming animated adaptations of Minecraft and Diablo, among other projects.
These existing collaborations are separate from the proposed seven-year licensing agreement, meaning the collapse of the larger deal does not automatically affect projects already in development.
Netflix has previously invested in adaptations of popular gaming franchises, while other entertainment companies have also sought to turn successful games into films and television series.
The reported negotiations highlight the growing value of video game intellectual property in the entertainment industry.
For Netflix, securing exclusive access to major gaming franchises could have provided a steady pipeline of stories for its global audience. For Xbox, the rights represent valuable assets that could generate revenue through licensing and expand its franchises into new markets.
However, the two sides reportedly could not agree on the financial terms. For now, Xbox appears to be pursuing a more flexible approach to entertainment partnerships, while Netflix continues its existing adaptation projects with the company.
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