While the video game industry seems to be in free fall, especially at Xbox, the TV-pulled-from-video-games industry is on the rise. Especially at Xbox. Earlier this month, Microsoft announced a new department dedicated to cross-media property development. According to an industry insider, the team may have come from the ashes of a burned deal with Netflix, after Xbox reportedly over-leveraged the value of its intellectual properties.

In a report from Puck News ‘ Matthew Belloni , a deal was forming between Xbox and Netflix to develop projects based on its extensive gaming portfolio. In a write-up on freshly arrived Netflix executive Peter Rice, it was revealed that the streaming megalith offered newly appointed Xbox CEO Asha Sharma $500 million for exclusive rights to adapt a great deal of their intellectual property over a seven year period. A shiny figure. A healthy chunk of time.…