Xbox may have mishandled a potentially lucrative deal with Netflix that would have granted the streaming giant exclusive rights to adapt numerous game properties for film and television. According to a report from Puck News, Netflix initially offered Microsoft $500 million over seven years for these rights. However, the deal reportedly fell apart when Xbox CEO Asha Sharma countered with a demand of $800 million.
In response to the failed negotiation, Xbox stated that Netflix remains a valued partner, citing upcoming projects like the animated Minecraft series and the Diablo series. The company also noted receiving significant interest in adapting its intellectual property. It is unclear how this collapsed deal connects to Xbox's recently announced formation of a new department dedicated to cross-media property development, though it is speculated to be an effort to recover from the setback.
The trend of adapting video game intellectual property for other media has seen a resurgence, with projects like HBO's The Last of Us and the Super Mario Bros. Movie driving renewed interest in their source games. Amazon's Fallout television series and Warner Bros.' Minecraft movie also proved to be significant successes. Xbox itself has benefited from this trend, though not all adaptations have achieved the same level of cultural impact, as seen with Paramount's Halo series.
Microsoft possesses a vast library of gaming intellectual property that could serve as the basis for future adaptations, including franchises such as Doom, Elder Scrolls, Gears of War, and Call of Duty. Netflix, meanwhile, has already produced successful adaptations like Cyberpunk: Edgerunners, Arcane (based on League of Legends), and Castlevania, and is set to release a live-action The Legend of Zelda series next year. This market presents ample opportunities for both platforms, though the specifics of which Xbox properties Netflix was interested in remain undisclosed.