Video game adaptations are all the rage these days, with film and TV projects in various stages of development, and Netflix wants to jump on the bandwagon and seize the opportunity. The streaming giant has already reached an agreement with Microsoft to co-develop a Gears of War movie and plans to acquire more Xbox IPs to create new series. The only problem? Reportedly, Microsoft's asking price is far higher than Netflix expected.
According to a report by entertainment journalist Matthew Belloni in Puck News, Netflix proposed to Microsoft a seven-year exclusive deal for film and TV adaptations of Xbox games for $500 million. Xbox CEO Asha Sharma and her business team promptly countered with an $800 million offer, forcing Netflix to withdraw its previous proposal.
Regarding the termination of negotiations, current reports provide details from two perspectives. One account suggests that Microsoft's high counteroffer prompted Netflix to withdraw its bid; another mentions that the departure of former Netflix Chief Content Officer Bela Bajaria, who made the offer, combined with the company's announcement of laying off 1,000 employees, ultimately took the deal off the table. Netflix did not comment on this.
Although Netflix declined to comment on the report, Xbox told Belloni that its intellectual property has garnered "record-breaking interest" and that it still views Netflix as a partner for future projects.
Belloni added that Xbox is currently "seeking to strike smaller-scale deals with more partners," such as the Diablo animated series developed with Netflix, the new season of the Fallout series launched in collaboration with Amazon Prime Video, the Call of Duty movie produced with Paramount Pictures, and the sequel to the Minecraft movie produced with Warner Bros. Pictures.
Xbox is also expanding its multimedia business; earlier this month, the company announced the establishment of the Xbox XP division. This new division, focused on films, television, merchandise, theme parks, and live events, will be led by Lucasfilm veteran Karyn Walters.
Xbox Pictures is one of its subsidiaries, and it will leverage Xbox IP to develop film and television projects, as well as other forms of "linear storytelling."
