Xbox reportedly turned down a $500 million Netflix offer for seven years of exclusive shows and films based on its characters, and asked for $800 million instead. VGC reports that the claim comes from a new Puck report, which cites three sources familiar with the situation. The deal has reportedly fallen through.
The numbers show how far apart the two sides were. Spread over seven years, Netflix’s reported offer works out at roughly $71 million a year, while Xbox’s counter implies about $114 million a year. That leaves a $300 million gap, and it appears neither side wanted to close it. Netflix declined to comment on the talks.
Xbox has not denied that interest exists. In a statement to Puck, the company said it has “received record-breaking interest in our I.P.” and called Netflix “a valued partner”. It also said it is excited about the forthcoming release of its Minecraft and Diablo animated series together on the service, “among other adaptations”. So the relationship continues even if the blockbuster arrangement doesn’t.
What Xbox does next
Puck reports that Xbox is now pursuing “smaller deals with more partners” instead of one overarching exclusivity agreement. That would let Microsoft license individual franchises to different studios and streamers rather than lock its catalogue into one platform for seven years. The report doesn’t say which franchises were covered by the Netflix talks or which partners Xbox is approaching.
Microsoft’s TV track record helps explain the caution. The live-action Halo series, made with Paramount, debuted in 2022, returned for a second season in February 2024 and was cancelled in July 2024. A single big-budget adaptation can end abruptly, and a seven-year exclusive commitment is a far larger bet.
The timing also fits a company watching its spending. We recently covered reports that Xbox is preparing major layoffs as Microsoft begins a 100-day reset, a backdrop that makes a large licensing windfall look attractive, though nothing in the Puck report links the two.
Netflix’s other game deals
Netflix has been far from short of game-based projects. It has struck deals with multiple game makers, and one of its most successful, Cyberpunk: Edgerunners, returned this week. Hideo Kojima makes a cameo in the new run of the anime, as he did in Cyberpunk 2077. We have more on the follow-up in our piece on Edgerunners 2’s fall 2026 release and new Night City crew.
For now, the Minecraft and Diablo animated series are the confirmed Xbox projects heading to Netflix. Anything beyond those, including how many partners Xbox signs and on what terms, hasn’t been announced.
Is the Xbox and Netflix deal officially dead?
Puck reports that the deal has fallen through, but neither company has announced anything. Xbox’s statement calls Netflix “a valued partner” and points to the upcoming Minecraft and Diablo animated series, while Netflix declined to comment.
Which Xbox characters were involved?
The report doesn’t say. VGC describes the talks as covering “Xbox characters” and “its biggest characters” for seven years of exclusive shows and films, without naming franchises.
Are Xbox shows still coming to Netflix?
Yes. Xbox says it is excited about the forthcoming release of its Minecraft and Diablo animated series on Netflix. The company is reportedly now pursuing smaller deals with more partners rather than one exclusive agreement.
