Microsoft reportedly sought $800 million from Netflix for seven years of exclusive film and television adaptation rights to Xbox gaming properties, after the streaming company initially offered $500 million. The proposed agreement is now off the table, with Xbox reportedly pursuing smaller licensing deals involving multiple partners instead.
The financial details were revealed by Matthew Belloni in an October 23, 2026, report for Puck’s What I’m Hearing newsletter. Citing three sources familiar with the negotiations, Belloni reported that former Netflix Chief Content Officer Bela Bajaria proposed a $500 million agreement covering exclusive film and television adaptations of Xbox titles for seven years.
Xbox CEO Asha Sharma and Microsoft’s business affairs team responded with an $800 million counteroffer, creating a $300 million difference between the two proposals. However, the companies did not reach an agreement before Bajaria departed Netflix.
According to Belloni, Netflix’s original offer was withdrawn following Bajaria’s departure. Netflix Chief Financial Officer Spence Neumann was reportedly among those who considered Microsoft’s requested price too high.
Neither company has publicly confirmed the proposed financial terms. Netflix declined to comment when approached by Puck, while Microsoft acknowledged continued interest in adapting Xbox properties without directly addressing the reported negotiations.
In its statement to Puck, Xbox said it had received “record-breaking interest” in its intellectual property and continued to regard Netflix as an important partner.
The company also confirmed that its existing animated adaptations of Minecraft and Diablo remain in development with Netflix, indicating that the reported collapse of the broader licensing negotiations has not ended their existing collaborations.
Netflix is also developing a live-action Gears of War film, although the status of that project was not specifically addressed in Microsoft’s statement.
Rather than pursuing another agreement covering a broad collection of Xbox properties, Microsoft is reportedly shifting toward smaller licensing arrangements with multiple entertainment companies. Belloni did not identify which franchises were included in the original Netflix proposal or name any additional prospective partners.
The reported approach aligns with Microsoft’s broader efforts to expand its gaming properties into film, television and other entertainment formats. The company has established its Xbox XP division to support expansion beyond games, while Sharma continues overseeing changes across Xbox’s business.
Those changes come amid a wider leadership transition, including the departure of Xbox's first chief operating officer, Helen Chiang, whose responsibilities have been redistributed among other executives.
Microsoft has also been emphasizing the performance of its gaming franchises, with Sharma recently discussing how Xbox first-party games have returned to growth following an earlier decline.
For Xbox players, the reported negotiations concern film and television adaptations rather than changes to existing games, Game Pass subscriptions or console availability. The potential significance lies in how Microsoft licenses its franchises for entertainment projects outside gaming.
The withdrawal of Netflix’s proposed agreement does not prevent individual Xbox properties from receiving adaptations through the streaming service or other companies. However, Microsoft has not announced any new licensing agreements resulting from its reported strategy, and the specific franchises involved in the $800 million negotiations remain undisclosed.
