According to Kotaku, reporting claims first made by Puck News' Matthew Belloni, Netflix offered newly appointed Xbox CEO Asha Sharma $500 million for exclusive rights to adapt a large share of Xbox's intellectual property over a seven-year period.

Sharma countered at $800 million, and Netflix rescinded its offer rather than meet the higher number. The talks would have covered a sweeping slate of TV and film projects drawn from Xbox's extensive gaming portfolio.

Microsoft declined to comment on specific bids, telling outlets it has received record-breaking interest in its IP and that its priority is finding the right creative partner for each franchise.

The reversal is striking because adaptation deals are currently the hottest currency in both industries.

Kotaku notes that HBO's The Last of Us, Illumination's Super Mario films, the Minecraft movie, and Amazon's Fallout series all proved monumental hits, often rerouting attention back to the source games.

With game development costs soaring, publishers are actively seeking cross-media deals to give back catalogues a second wind.

For Netflix to walk away from the crown jewels of Xbox's catalog — Doom, Elder Scrolls, Gears of War, Call of Duty were among franchises Kotaku floats — suggests the $800 million ask crossed a line even the streaming giant wouldn't cross.

Microsoft told Kotaku it won't comment on specific negotiations but emphasized that Netflix remains a valued partner: the two companies have Minecraft and Diablo animated series on the way together. Meanwhile, Netflix's game-adjacent slate keeps performing.

What's on Netflix reports that Cyberpunk: Edgerunners Season 2 debuted at #8 on its TV chart this week, adding to a track record of adaptations including The Witcher, Castlevania, and the upcoming live-action Zelda film arriving next year.

That proven appetite for game adaptations is exactly what made the seven-year exclusivity pitch so tempting for both sides before the price talks broke down.

Kotaku reports that rather than one exhaustive exclusivity pact, Xbox is now pursuing smaller, less comprehensive deals with multiple production partners.

The company recently built a dedicated entertainment division, called XP, to lead those efforts, following Microsoft's earlier announcement of a cross-media property development department.

The reported model it wants to recreate is the Minecraft movie and Amazon's Fallout — multi-partner deals that minted hits. The risk, per the reporting, is repeating the Halo experience: despite being Xbox's crown jewel, Paramount's Halo series failed to capture the zeitgeist.

Which partner gets which franchise now becomes the story to watch.

While the exclusivity mega-deal died, the kind of project it would have contained is thriving on Netflix.

What's on Netflix highlights Cyberpunk: Edgerunners Season 2, Studio Trigger's standalone ten-episode return to Night City under new director Kai Ikarashi, which the outlet's reviewer gave five stars, calling it "scrappier, messier than its predecessor, but that in itself feels human."

It debuted at #8 on the outlet's weekly TV chart.

Netflix, per Kotaku, has plenty of alternatives even without Xbox's vault — the outlet points to the streamer's existing work on Cyberpunk, League of Legends, The Witcher, and Castlevania, plus next year's live-action Zelda.

Xbox, meanwhile, will test whether its new XP division can land the multi-partner deals it now prefers. Fans should treat the $500 million and $800 million figures as reported claims from Puck News via Kotaku, not confirmed numbers, since Microsoft explicitly declined to comment on specific bids.

But the shape of the outcome — exclusivity rejected, fragmentation chosen — is the part both outlets agree on.