Report: Netflix walked away from $500M Xbox IP adaptation deal

Netflix offered Xbox 500 million USD for exclusive adaptation rights to the company's gaming properties over seven years, according to a report from Puck News reporter Matthew Belloni. Xbox CEO Asha Sharma reportedly countered at 800 million USD, and Netflix withdrew the offer.

Microsoft declined to comment on specific bids or negotiations. The company said it has received record-breaking interest in its intellectual property.

Microsoft also said Netflix remains a partner, pointing to forthcoming animated series based on Minecraft and Diablo that are in the works with the streamer.

According to Belloni, Xbox is now pursuing smaller deals with multiple production partners rather than a single exclusive agreement.

The reported talks come as Microsoft builds out its cross-media business. In October 2026, the company announced a new entertainment division called XP to lead those efforts.

Mixed results for game adaptations

Game-to-screen adaptations have had a varied record at the box office and on streaming. Warner Bros.' Minecraft movie and Amazon's Fallout TV series were major hits, while Paramount's Halo series failed to capture the zeitgeist as effectively. Netflix has built shows around Cyberpunk, League of Legends, The Witcher and Castlevania, and holds streaming rights to the live-action Zelda next year.