Xbox and Netflix negotiated a high-value, multi-year adaptation deal that collapsed after the two sides diverged sharply on price, according to industry reporting published Friday.
What was reported
Matthew Belloni of Puck News reported that Netflix offered $500 million for exclusive rights to adapt a broad slate of Xbox intellectual property over seven years. The report says Xbox’s newly appointed chief executive, Asha Sharma, countered by asking for $800 million, and that Netflix rescinded the offer after that increase.
- Reported proposal: $500 million from Netflix for seven years of exclusive adaptation rights.
- Alleged counter: Xbox asked for $800 million.
- Outcome: Netflix withdrew the offer and Xbox is said to be pursuing smaller deals with multiple partners.
Kotaku’s write-up of the Puck News reporting cites industry commentary that the negotiation was part of broader efforts by game publishers to expand into film and television as development costs rise and studios seek additional revenue streams from existing catalogs.
Xbox response and context
Xbox provided a comment to Puck News that was summarized in the reporting. The company said it has ongoing animated projects and strong interest from partners for its properties. The comment in full was:
“Netflix is a valued partner,” Xbox said, and on top of upcoming animated Minecraft and Diablo series they have “received record-breaking interest” in adapting their IP.
The report said that, after the collapse of the large exclusive negotiation, Xbox appears to be shifting strategy toward securing smaller, nonexclusive deals with multiple production partners rather than a single sweeping pact. The story connects that shift to Xbox’s creation of a new team focused on cross-media development.
Industry backdrop
Publishers have pursued adaptations of video game franchises more aggressively in recent years as streaming services and studios seek recognizable intellectual property. Successful adaptations such as HBO’s The Last of Us and Illumination’s Super Mario films have revived interest in source games and driven cross-media investment. Microsoft and Xbox already have adaptations in various stages, including animated projects tied to Minecraft and Diablo, and have seen external demand for other properties.
The reported negotiation underscores the growing commercial value placed on gaming IP by the television and film industry and the divergent approaches companies take when monetizing those assets.
