Why Microsoft Is "Very, Very Cautious" About Making Movies And TV Shows Based On Its Games

Microsoft has a big library of popular characters and franchises, but film and TV adaptations of its IP have been few and far between over the years. Xbox boss Phil Spencer has now revealed why.

Speaking at TheGrill 2021 with Take-Two boss Strauss Zelnick, Spencer said that, as with many things, it comes down to economics. Simply put, the business opportunity for interactive entertainment like games far outpaces the potential money Microsoft could make from a film or TV show based on one of its franchises or characters.

There is some value in transmedia efforts like the Halo TV show, the Minecraft movie, and the Gears of War film--but it's more about marketing and publicity as opposed to being a profit-driver on their own.

"I think the business value, [the] market value in today's top-tier gaming intellectual property is so high. For us, whenever we look at doing something in the linear space, we're very, very cautious," Spencer said.

Games make so much money that Microsoft does not want to risk a dud of a film or a TV show negatively impacting the perception of a given franchise. For TV shows and films based on Xbox franchises, "the economics usually don't match the economics" of the gaming business, Spencer said.

"So we look at them almost more like exposure and marketing opportunities," Spencer said.

The great power of games, Spencer said, is that they are interactive--players decide how they want to guide and shape the experience. Passive entertainment like film and TV do not offer this, and therefore the revenue potential is smaller, Spencer said.

When Microsoft does make a linear production, as it's currently doing with the Halo TV show or the Gears of War movie, the creative execution must be top-notch or it could lead to the downfall of a franchise, Spencer warned.

Also during the event, Zelnick said Take-Two feels the same way--which explains why the company has shot down all of the offers to make GTA movies over the years. The company is now adapting its Borderlands movie for the screen, though, so Take-Two clearly isn't totally against the idea.

Like Spencer, Zelnick said he believes in the power of interactive entertainment and doesn't think interactive elements belong in linear programming. "As soon as you give people a 'choose-your-own-adventure' opportunity in a motion picture, you know what it does? It ruins the motion picture because you have destroyed that suspension of disbelief," Zelnick said. "Even though I sometimes think, I'm watching White Lotus and I would kind of like something else to happen, or Ozark, I would really like something else to happen, but if I get to make something else happen, I can no longer believe in it. It can't be real for me in that moment. Whereas GTA Online is real for you because of your engagement."

In other news about video game movies, Nintendo just announced the cast for the Mario movie, featuring Chris Pratt as Mario, Anya Taylor-Joy as Princess Peach, and Jack Black as Bowser.