Based on the headline my first thought was "Dumb MSFT!" but after reading TFA, the list of major properties is long and we don't know the proposed terms or counter on critical elements like ancillary rights, cross-media, sub-licensing, theatrical, international and, most-importantly, back-end participation. Just one of these terms can double or halve a deal's value, so we have no way to tell if $500M is crazy high or crazy low.
For example, the deal Sony Pictures made which gave Netflix all global film and sequel rights to KPop Demon Hunters with zero back-end participation on the billions of dollars Netflix is now certain to earn from KPop is widely considered by experts the single worst streaming deal ever made. And that was just one unproven animated kids musical. XBox has proven mega-IP like Minecraft, Call of Duty, Warcraft, Halo, Diablo and Elder Scrolls as well as lots of unproven properties - any one of which might become the next KPop Demon Hunters.
For example, the deal Sony Pictures made which gave Netflix all global film and sequel rights to KPop Demon Hunters with zero back-end participation on the billions of dollars Netflix is now certain to earn from KPop is widely considered by experts the single worst streaming deal ever made. And that was just one unproven animated kids musical. XBox has proven mega-IP like Minecraft, Call of Duty, Warcraft, Halo, Diablo and Elder Scrolls as well as lots of unproven properties - any one of which might become the next KPop Demon Hunters.