Netflix and Xbox Deal Reportedly Collapses Over Microsoft's $800 Million Demand

Microsoft and Netflix reportedly failed to reach an agreement over a seven-year deal that would have given the streaming company exclusive rights to adapt Xbox gaming properties into movies and TV shows.

According to a report from Puck, citing three sources familiar with the negotiations, Netflix offered Microsoft $500 million, but Microsoft wanted $800 million.

The companies could not agree on the price, and negotiations eventually collapsed. Neither company has confirmed the reported financial details.

Microsoft reportedly rejected Netflix’s $500 million offer

Netflix reportedly wanted exclusive adaptation rights to Xbox intellectual properties for seven years, preventing other streaming services from securing the same rights during that period.

However, Microsoft’s reported $800 million asking price was $300 million higher than Netflix’s initial offer.

The report does not specify which Xbox franchises Netflix wanted to adapt or whether the proposed agreement covered Microsoft’s entire gaming portfolio.

Following the failed negotiations, Microsoft is reportedly pursuing smaller licensing agreements with multiple entertainment partners rather than granting exclusive rights to a single streaming platform.

The discussions come as Microsoft and Netflix have also reportedly explored bundling their services.

Microsoft and Netflix are still working on Xbox adaptations

Despite the failed licensing deal, Microsoft and Netflix continue to work together on gaming adaptations.

An Xbox spokesperson confirmed that animated series based on Minecraft and Diablo are currently in development with Netflix.

Microsoft has also reported record-breaking interest in Xbox gaming adaptations, suggesting that demand for its gaming franchises extends beyond Netflix.

By negotiating separate agreements, Microsoft could license different properties to multiple studios and streaming platforms instead of committing its gaming portfolio to one company.

Neither Microsoft nor Netflix has announced whether discussions about a broader exclusive licensing deal will resume.

Meanwhile, Microsoft has also announced 50 new Xbox games arriving October 26–30.

Via Neowin