With Minecraft and Diablo shows already on the way, Netflix reportedly offered Xbox $500m for a bigger film and TV deal

Netflix and Xbox’s exclusive film and television adaptation deal negotiations have fallen through, according to reporting from entertainment journalist Matthew Belloni at Puck News. Netflix’s former chief content officer Bela Bajaria made an opening offer of $500 million for the exclusive rights to adapt Xbox titles into streamable content over a seven-year period. Xbox CEO Asha Sharma and the company’s business affairs team countered with a demand of $800 million for the same deal—a $300 million difference that ultimately killed the negotiations.

Netflix rescinded its offer in response to Xbox’s substantial counteroffer. The failed agreement would have given Netflix exclusive access to Microsoft’s gaming portfolio at a time when video game adaptations are increasingly popular in the streaming space. Netflix already has several gaming properties in development, including shows based on Minecraft and Diablo, along with a Gears of War movie, indicating the streamer’s broader investment in interactive entertainment.

The timing is notable: Microsoft announced Xbox XP just after these negotiations concluded, a new division specifically designed to expand Xbox franchises into film and television. With the Netflix deal off the table, Xbox appears poised to pursue smaller, individual licensing agreements rather than an all-encompassing exclusive partnership. This suggests Microsoft’s valuation of its intellectual property—particularly franchises like Halo, Forza, and others—significantly exceeds what streaming platforms are currently willing to offer.

With Minecraft and Diablo shows already on the way, Netflix reportedly offered Xbox $500m for a bigger film and TV deal

Sources