Xbox plans a mega package of franchises for Hollywood

Investing ambitiously in the licensing of established brands is a wise move to enhance a billion-dollar portfolio of intellectual properties, although packaging such diverse universes for bundled sale risks deterring studios interested only in specific titles. Xbox introduced a business model called the "bulk studio deal" for Hollywood producers, proposing the joint licensing of audiovisual adaptation rights for more than 12 brands from its ecosystem.

According to a report published by the Puck portal, the Microsoft division's proposal includes industry giants like Halo, World of Warcraft, The Elder Scrolls, and Diablo.

The high asking price set by the company, initially exceeding $300 million, has generated caution among executives from entertainment giants like Netflix, Paramount, and Universal, who are still assessing the viability of the investment without confirmed progress in negotiations.

The portal responsible for the investigation reported that Netflix, Paramount, and Universal chose not to comment publicly on the progress of the meetings.

This change in approach represents a significant escalation of the brand's presence beyond consoles: instead of licensing each property individually, Xbox seeks to establish a large-scale partnership to deliver a significant portion of its audiovisual catalog to a single platform or producer.

One of the negotiation's cornerstones is the Halo franchise, which returned to the company's direct control after the exhibition contract with Paramount ended, indicating that Xbox plans to rework the universe of Master Chief in new productions.

In addition to traditional brands, the package leverages the multibillion-dollar acquisitions of Bethesda and Activision Blizzard, featuring heavyweights like World of Warcraft, Diablo, and The Elder Scrolls.

The strategy aims to diversify revenue sources following massive investments in studio acquisitions, using television and cinema as platforms to reach new audiences that don't traditionally engage with video games.

Specific projects are already underway within this model, such as adaptations of Gears of War and Sea of Thieves, but the current contract seeks to expand this presence to an unprecedented scale in the sector.

If the deal is concluded on the proposed terms, a single studio will become the official home of the largest properties in the Xbox ecosystem in theaters.

However, discussions are ongoing without a definitive conclusion, and the substantial $300 million price tag stands out as the main obstacle to sealing the agreement.

Diversifying market fronts to monetize billion-dollar investments in studios is a sound business vision that fortifies the relevance of Xbox. On the other hand, tying the sale of renowned universes like The Elder Scrolls and Diablo to a single, inflated contract shows a strict stance by Microsoft, risking stalling negotiations that could lead to excellent adaptations if handled individually by specialized producers.