Xbox reportedly countered Netflix's offer for exclusive game adaptation rights with an $800 million proposal for a seven-year deal. The initial offer from Netflix, aimed at securing adaptations of Microsoft's prominent game titles, was said to be $500 million.
Details of these negotiations emerged from a report by Puck News, which also indicated that the deal is now off the table following recent executive changes at Netflix. It remains unclear what specific content the proposed exclusivity would have entailed beyond the adaptation rights for Xbox's intellectual property.
The report suggests that Xbox CEO Asha Sharma and her team valued the exclusivity significantly higher than Netflix's initial bid. Following a period of internal restructuring at Netflix, which included the departure of content chief Bela Bajaria, the exclusivity agreement is no longer being pursued.
Despite the collapse of this specific long-term exclusivity deal, both Xbox and Netflix are still expected to collaborate on various projects. Adaptations for the Gears of War franchise, including a live-action movie and an animated series, have been in development. Netflix also announced plans in 2024 for a Minecraft animated series, and an animated Diablo series was recently confirmed.
An Xbox representative stated to Puck, "We have received record-breaking interest in our IP; Netflix is a valued partner and we are excited for the forthcoming release of our Minecraft and Diablo animated series together, among other adaptations." The company is reportedly now exploring smaller deals with multiple partners for its other IPs.
This negotiation breakdown coincides with recent layoffs at Netflix and the departure of several key executives, including Dan Lin, the former head of film. This period of change at Netflix has reportedly affected other high-profile projects, such as Greta Gerwig's upcoming Narnia film.
It remains to be seen which partners Xbox will secure for future game adaptations. In the interim, recent video game adaptations have met with varied critical reception, with Capcom's Street Fighter movie receiving a 6/10 review and its Resident Evil movie earning an 8/10.