Xbox Netflix Deal Collapses Over $800M Asking Price

A seven-year Xbox Netflix deal has reportedly collapsed over money. Puck reports that Netflix offered $500 million for exclusive films and shows based on Xbox games, Xbox countered with $800 million, and the talks fell through.

Key facts

• Netflix's offer: $500 million for a seven-year exclusive deal
• Xbox's counter: $800 million
• Original report: Puck (Matt Belloni), citing three sources
• Status: Deal reportedly dead; Netflix declined to comment
• Still coming to Netflix: Minecraft and Diablo animated series, a Gears of War film
• Same day: Xbox's first COO, Helen Chiang, left Microsoft

Why did the Xbox Netflix deal fall through?

The story comes from Puck's Matt Belloni. As VGC reports, three sources familiar with the talks say Netflix wanted to adapt Xbox's games into films and series, exclusively on its platform, for seven years. Its offer was $500 million.

According to Eurogamer, Xbox CEO Asha Sharma and the division's business affairs team came back with $800 million. That is a $300 million gap. Spread over seven years, Netflix was offering roughly $71 million a year, while Xbox wanted about $114 million a year.

Former Netflix content chief Bela Bajaria reportedly started the talks. Her departure, combined with Xbox's steep counter, ended them. Netflix CFO Spence Neumann was reportedly among the executives who felt the deal wasn't worth $800 million.

What have Xbox and Netflix said?

Netflix declined to comment. Xbox gave Puck a short statement, saying it has received "record-breaking interest" in its IP. It called Netflix "a valued partner" and said it is excited about the upcoming Minecraft and Diablo animated series the two are making together.

Xbox is now said to be chasing smaller deals with more partners rather than one big exclusive package. In practice, each franchise could end up at whichever studio or streamer suits it best.

Which Xbox franchises are heading to screens?

Even without the big deal, Xbox's games are already moving into film and TV. The Netflix slate alone is substantial:

• Minecraft animated series: announced in May 2024, made by WildBrain, with an original story and new characters
• Diablo animated series: announced with Netflix at BlizzCon in September 2026
• Gears of War: a live-action film in the works for Netflix
• Overwatch and Warcraft: Blizzard president Johanna Faries hinted these could get adaptations too

Outside Netflix, Amazon is turning Wolfenstein into a live-action series and will soon debut season three of Fallout. Paramount is making a Call of Duty movie. Microsoft's earlier Halo series with Paramount premiered in 2022 and was cancelled in July 2024 after two seasons.

Why are game adaptations worth so much?

Game adaptations have been on a hot streak. Eurogamer points to The Last of Us, Fallout, the Super Mario films and the Sonic movies. Netflix has its own hit in Cyberpunk: Edgerunners. That is why every major studio wants game licenses. Not every project lands, though: this year's Street Fighter and Mortal Kombat 2 films got a cooler response.

A rough week for Xbox: COO Helen Chiang departs

On the same day, Xbox lost a top executive. According to an internal memo seen by The Verge, Xbox's first chief operating officer, Helen Chiang, has left Microsoft. Chiang spent 21 years at the company, ran Minecraft, and was promoted to COO in July.

Sharma's memo was very short. Chiang's duties are being split among other Xbox leaders for now. Microsoft would not explain the exit, with communications VP Kari Perez saying the company doesn't discuss individual personnel matters. The Verge also notes rumors of more Xbox layoffs this month, in November and in January.

Taken together, the news shows Xbox's "reset" is far from over. The same cuts have put Arkane Lyon's future at risk.

What does it mean for players?

In the short term, not much changes. The Minecraft and Diablo series are still on their way to Netflix. Longer term, Xbox's plan to spread its franchises across partners means the next show based on your favorite game might land on a different streaming service.

Related reading

• Arkane Lyon Could Close: What It Means for Marvel's Blade
• Dark Souls Anime: When Will It Arrive on Netflix?
• GTA 6 Trailer Passes Minecraft in Views

FAQ

Is the Xbox Netflix deal cancelled?

According to Puck, the seven-year exclusive deal fell through. Neither company has announced anything officially, and Netflix declined to comment.

Are the Minecraft and Diablo shows still coming to Netflix?

Yes. Xbox reaffirmed both animated series in its statement to Puck.

Why did Xbox ask for $800 million?

The report doesn't say. Xbox only said it has seen record-breaking interest in its IP.

Sources

• VGC: Xbox wanted $800 million from Netflix
• Eurogamer: Netflix reportedly offered Xbox $500m
• The Verge: Xbox's first chief operating officer is out
• Minecraft.net: Netflix series