Pictured: Overwatch, Halo, World of Warcraft and Doom
When it comes to video game adaptations, Netflix has essentially become the final boss of Hollywood. As we’ve documented extensively, Netflix has been aggressively mining video game IP for quite some time. From smash hits like Arcane, Cyberpunk: Edgerunners, and Castlevania to upcoming projects like Tomb Raider: The Legend of Lara Croft, the streamer has built a reputation as the premier destination for translating pixels to prestige television.
According to the latest What I’m Hearing newsletter from Puck News, Microsoft’s Xbox division is currently shopping around a massive, bulk film and TV deal for its deep vault of video game properties—and Netflix is reportedly one of the top suitors taking a look.
Per Puck’s report, Microsoft wants to lean heavily into Hollywood, pitching an incredibly pricey, all-encompassing package of more than a dozen video game titles to potential buyers.
The franchises allegedly included in this package come with IP from across their studios and history, including their most recent acquisitions, whether that’s from Activision and Bethesda or their own library. Among the franchises cited up for grabs are Halo, World of Warcraft, The Elder Scrolls, and Diablo, among others.
The report notes that Netflix, Paramount (which worked on Halo and the upcoming Call of Duty movie), and Universal are all currently “taking a look” at the package. But bagging these rights won’t come cheap. Microsoft is reportedly asking for more than $300 million for a long-term overall deal—a massive upfront price tag that has already caused at least one potential partner to balk.
Why is Xbox shopping this mega-package now? Puck notes that despite Microsoft’s massive acquisition of Activision Blizzard in 2023 (making Xbox the largest video game publisher outside of China), the division is currently in a tough spot. Xbox has suffered alongside the rest of the struggling games industry, slashing 3,200 jobs in July (roughly 20% of the unit’s workforce). Microsoft is reportedly looking for a massive check to monetize its vast, unadapted IP library and offset recent losses.
Netflix and Xbox Are Already in Co-Op Mode
If Netflix does decide to write that $300 million check, it wouldn’t be the first time they’ve done business with Xbox. The two companies already have a very active, albeit complicated, working relationship.
First off, Netflix is currently hard at work developing a massive live-action feature film and a mature animated series based on Xbox’s Gears of War franchise, albeit updates on these have been few and far between since that initial announcement back in November 2022 (yes, nearly four years ago). Furthermore, the two companies are notably already collaborating on a brand-new Minecraft animated series, which is expected to hit the streamer within the next few years (while Warner Bros. and Legendary handle the separate live-action movie).
There’s also the Master Chief of it all. Interestingly, Puck confirms that the film and TV rights to Halo have reverted back to Xbox following Paramount+’s cancellation of the live-action series after two seasons. Fans will know that the Paramount Halo series is actually currently streaming on Netflix globally. However, those licensing rights are strictly temporary and are set to begin expiring in October 2026 for regions like the US. A mega-deal would likely mean hitting the reset button for an entirely new adaptation rather than getting the third season many desire.
Perhaps most fascinating is the history between Netflix and Activision Blizzard (which Microsoft now owns). Before Microsoft finalized its acquisition, Netflix was reportedly developing an animated series based on the hit hero shooter Overwatch, alongside adaptations of StarCraft and Diablo. However, as it was ultimately uncovered, those projects were nixed after Activision Blizzard filed a lawsuit against Netflix in 2020 for allegedly poaching its CFO.
With Microsoft now steering the ship and the old Activision regime gone, that bad blood is likely washed away, opening the door for Overwatch and Diablo to finally get the Netflix treatment they were originally destined for.
Will Netflix Actually Bite?
On paper, an overall deal with Xbox makes perfect sense for Netflix’s current content strategy.
Netflix co-CEO Ted Sarandos and Head of Content Bela Bajaria have been extremely aggressive in pursuing established, globally recognized IP with built-in fandoms. Furthermore, Netflix has been pushing heavily into the gaming space itself with Netflix Games. A synergistic ecosystem where Netflix produces a high-budget Elder Scrolls series while offering exclusive mobile spin-off games on their app is exactly the kind of cross-pollination the company is striving for.
What do you think? Should Netflix pay to become the exclusive streaming home for Halo, Diablo, Elder Scrolls, Overwatch, and World of Warcraft? Let us know your thoughts in the comments down below!
