Netflix reportedly proposed a $500 million deal to Xbox for the exclusive rights to adapt the company's video game intellectual property into films and TV shows over a seven-year period. However, the agreement is said to have fallen apart due to Xbox's counter-offer of $800 million for the same terms.
According to a report from Puck News, former Netflix Chief Content Officer Bela Bajaria initially approached Xbox. Following the executive's departure from Netflix, Xbox's business affairs team responded with the substantially higher valuation. Netflix CFO Spence Neumann was reportedly among those at the streamer who considered the $800 million price tag too steep.
The report indicates that this specific deal did not materialize. However, Netflix and Xbox are continuing to collaborate on other projects. Animated series based on Minecraft and Diablo are already in development, and a live-action Gears of War film is also planned.
Xbox has stated that it is experiencing "record-breaking interest" in its IP and expressed excitement for the upcoming Minecraft and Diablo animated series, among other adaptations with Netflix. The company is reportedly continuing to explore smaller licensing agreements.
This situation occurs amidst a broader trend of game adaptations finding success in film and television. Recent examples include Amazon's Fallout series, the Super Mario Bros. movie, and HBO's The Last of Us. While some adaptations have been critically and commercially successful, others, such as Street Fighter and Mortal Kombat 2, have met with a more muted reception.