Xbox's first-ever chief operating officer leaves as Microsoft gears up for next-gen Project Helix

Microsoft's Xbox reportedly turned down a $500 million Netflix deal for exclusive rights to its IP, asking for $800 million instead. Netflix withdrew the offer. Xbox denies the deal's failure, citing other partnerships and record interest in its IP. The company is now pursuing smaller deals with multiple partners. According to an industry insider, this may have led to the creation of a new cross-media department.

Microsoft (MSFT) reports Q1 earnings on October 28, with guidance for over $50B in capital spending. Azure revenue grew 43% to $100B annually, but costs rose, with capex at $41B. Analysts expect double-digit growth across metrics. Key focuses include Azure growth, AI spending, Copilot monetization, and OpenAI exposure.

Microsoft's Xbox was negotiating an exclusive licensing deal with Netflix for its game titles, but talks collapsed after Netflix's head of content, Bela Bajaria, was fired. The deal fell through due to a price disagreement, with Netflix offering $500 million and Xbox seeking $800 million. Microsoft will now focus on individual licenses, such as Minecraft and Diablo animated shows.

Netflix's $500M bid for exclusive rights to adapt Xbox games like Halo and Diablo failed due to a $300M price gap with Microsoft. Talks ended after Netflix's content chief departed. Microsoft now plans smaller deals with multiple partners. Netflix remains a partner for some Xbox adaptations, like Minecraft and Diablo anime. Netflix has also scaled back its gaming efforts, closing a studio in 2024.

Netflix's $500M offer for exclusive Xbox game adaptation rights was rejected. Xbox sought $800M. Talks ended after Netflix's content chief left. Xbox now prefers smaller deals. Existing projects like Gears of War, Minecraft, and Diablo adaptations continue. Xbox sees high demand for its IP.

Pegasystems (PEGA) reported Q2 revenue of $393.4M, up 3.1% YoY, missing estimates by 6.6%. ServiceNow (NOW) reported $3.99B in revenue, up 24% YoY, beating estimates. Microsoft (MSFT) reported $90.01B in revenue, up 17.7% YoY, exceeding expectations. PEGA's stock is up 1.9%, NOW up 64%, and MSFT up 33.5% since reporting.