Netflix has reportedly attempted to secure exclusive screen adaptation rights to Microsoft’s Xbox gaming franchises in a deal worth US$500 million, potentially giving the streaming giant access to some of the industry’s most recognisable gaming properties.

According to reports, Netflix proposed a seven-year agreement covering film and television adaptations of Xbox intellectual property.

Xbox chief executive Asha Sharma and Microsoft’s business affairs team reportedly countered with a demand for US$300 million more, which ultimately led to the proposed agreement falling apart.

The report said Netflix’s offer was subsequently withdrawn following the departure of its then-chief content officer, Bela Bajaria. Netflix chief financial officer Spence Neumann was also reportedly among executives who considered Microsoft’s counteroffer too expensive.

Netflix has not publicly confirmed the reported negotiations.

The deal highlights the growing value of established video game franchises as entertainment companies compete for recognisable IP that can be adapted into films and television series.

Microsoft controls a substantial portfolio of gaming properties through Xbox Game Studios and its wider gaming business, including franchises such as Halo, Gears of War, Fable and Forza.

Securing exclusive rights across a broad catalogue could have given Netflix a pipeline of adaptations for years, while also preventing rival streaming platforms and studios from pursuing them.

Instead, Xbox is reportedly pursuing smaller agreements with multiple partners, allowing Microsoft to negotiate individual projects rather than committing its franchises to one streaming service.

In a statement reported by Puck, Xbox said it had received “record-breaking interest” in its intellectual property, describing Netflix as a valued partner.

 

The company also pointed to forthcoming animated series based on Minecraft and Diablo, which are being developed with Netflix.

Entertainment companies are increasingly looking to video games for established audiences, familiar characters and stories that can support multiple productions.

For example, Amazon, which has garnered attention with its Fallout television adaptation, and the Minecraft film which has shown the potential for cinema.

Microsoft itself has already explored the strategy through Halo, although the Paramount+ series was cancelled after two seasons.

Netflix has also built a substantial gaming adaptation portfolio, including Cyberpunk: Edgerunners and Castlevania.