Netflix's $500M Xbox Offer Fails: Microsoft Wanted $800M
Netflix reportedly came close to locking up the screen rights to Xbox's biggest games, then walked away over price. According to a new Puck report, the Netflix Xbox deal fell apart because the two sides were $300 million apart. Here is what has been reported, what Xbox has actually said, and what it means for the Halo, Diablo, and Minecraft adaptations already in motion.
Quick Answer: Puck reports Netflix offered $500 million for seven years of exclusive Xbox film and TV rights, and Microsoft countered at $800 million, so the Netflix Xbox deal did not move forward. These figures are reported, not confirmed by either company.
Table of Contents
- What Puck Reported About the Netflix Xbox Deal
- Why the Deal Reportedly Fell Through
- The Reported Numbers at a Glance
- Xbox's Response and Next Steps
- How This Connects to the August Xbox Rights Package
- What It Means for Halo, Diablo, and Minecraft Fans
- Confirmed vs. Reported
- FAQ
- Conclusion
What Puck Reported About the Netflix Xbox Deal
The story comes from Matthew Belloni's "What I'm Hearing" newsletter at Puck, published around October 23, 2026, and citing three sources familiar with the talks. Every outlet covering it, including Kotaku, Windows Report, and Inven Global, is relaying that single report.
According to Puck, Netflix offered Microsoft $500 million for exclusive film and TV adaptation rights to Xbox properties over a seven-year term. Exclusive would mean no other streamer could license those adaptation rights during that window. Xbox CEO Asha Sharma and her business affairs team reportedly came back at $800 million.
Why the Deal Reportedly Fell Through
Two things are reported as the cause: the price gap and a leadership change at Netflix.
- The price gap: The $300 million difference between the offer and the counter was reportedly too wide to close.
- The Bajaria exit: Netflix content chief Bela Bajaria reportedly made the original offer. After she left the company this month, the offer was reportedly taken off the table.
- Internal doubts: The report says Netflix CFO Spence Neumann was among the executives who thought the price was too high.
One outlet also reported that Netflix, now under new leadership from former Disney executive Peter Rice, appears more interested in partnering with outside brands. That is a single-source read on strategy, so treat it as context, not a conclusion.
The Reported Numbers at a Glance
| Detail | Reported figure |
| Netflix offer | $500 million |
| Xbox counter | $800 million |
| Gap between the two | $300 million |
| Proposed term | Seven years, exclusive |
| Rough annual value (simple division) | About $71M/year (offer) vs. about $114M/year (counter) |
The annual numbers are my own simple division, not figures from the report. They are only meant to show the scale of the gap.
Xbox's Response and Next Steps
Netflix declined to comment. Xbox did not confirm the offer, the counter, or the term. In its statement to Puck, Xbox said it has seen "record-breaking interest" in its IP, called Netflix a valued partner, and pointed to the Minecraft and Diablo animated series the two companies are making together.
The report says Xbox is now pursuing smaller deals with more partners instead of one giant exclusive. Kotaku's coverage adds that Microsoft wants to repeat the success of the Minecraft movie and Amazon's Fallout series, and that it recently set up a dedicated entertainment division to lead those efforts.
How This Connects to the August Xbox Rights Package
This is a follow-up to an earlier Puck report. In late August, Xbox was reported to be shopping a package of more than a dozen franchises to Hollywood, including Halo, World of Warcraft, The Elder Scrolls, and Diablo. Netflix, Paramount, and Universal were reported to be looking at it, and the asking price then was reported as more than $300 million.
The dollar figures in the two reports are different, and the sources have not explained how they relate, so I would not assume they describe the same structure. What both stories share is the idea of one broad rights package that Xbox hoped to sell to a single buyer.
What It Means for Halo, Diablo, and Minecraft Fans
- Diablo and Minecraft: Xbox says the animated series with Netflix are still in development, so the failed mega-deal does not cancel them.
- Halo: Adaptation rights reverted to Xbox after Paramount+ canceled the live-action series following two seasons. With no single buyer, Halo could go to any partner Xbox chooses.
- Existing projects: Paramount has a Call of Duty film in development, Amazon is developing a Wolfenstein series, and Netflix has previously announced Gears of War projects. None of those depend on this deal.
The practical takeaway is that more studios may get a shot at Xbox games, but through separate, smaller agreements.
Confirmed vs. Reported
| Confirmed | Reported only (via Puck) |
| Xbox and Netflix are working together on Minecraft and Diablo animated series | The $500 million offer and seven-year exclusive term |
| Xbox says it has "record-breaking interest" in its IP | The $800 million counter |
| Netflix declined to comment | Bajaria's exit ending the offer |
| Xbox did not confirm the offer or counter | Xbox shifting to smaller multi-partner deals |
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FAQ
How much did Netflix reportedly offer for Xbox film and TV rights?
Puck reports Netflix offered $500 million for seven years of exclusive adaptation rights.
How much did Xbox ask for?
Xbox reportedly countered at $800 million, which is $300 million above Netflix's offer.
Is the Netflix Xbox deal officially canceled?
Neither company has confirmed the offer or its collapse. Puck says the offer is off the table, and Xbox says it is pursuing other partnerships.
Are the Minecraft and Diablo animated series still happening?
Xbox's statement points to both as forthcoming Netflix projects, so they appear unaffected.
Why did the deal reportedly fall apart?
The report cites the price gap, Bela Bajaria's exit from Netflix, and internal concern about the cost.
Which Xbox games were in the earlier rights package?
The August report named Halo, World of Warcraft, The Elder Scrolls, and Diablo. The full list of more than a dozen franchises was never made public.
Conclusion
The Netflix Xbox deal looks like a case of two big companies valuing the same franchises very differently. The $500 million versus $800 million gap, combined with a leadership change at Netflix, reportedly ended talks before anything was signed. The deal itself is unconfirmed, but the Minecraft and Diablo animated series are real, and Xbox seems set on selling its adaptation rights piece by piece. I'll update this post if either company says more.
Sources: Puck's "What I'm Hearing" newsletter by Matthew Belloni, as relayed by Kotaku, Windows Report, Inven Global, and Pixel Twelve. All dollar figures are reported, not officially confirmed.