Microsoft creates XP entertainment division to expand Xbox franchises into film and television

Division structure and core mandate

Microsoft on Thursday announced the launch of XP, a new Xbox division designed to adapt the company's video game properties into film, television, consumer merchandise, and live events. The unit's title takes inspiration from the gaming shorthand for experience points. XP centralizes operations previously distributed across disparate Xbox teams and organizes them into four specialized units. Xbox Pictures handles linear film and television storytelling, while Xbox Products oversees consumer goods, clothing, and licensing agreements. Xbox Places manages live broadcasts, physical attractions, and theme park installations, and Xbox Partnerships oversees commercial alliances with brands, creators, and corporate sponsors.

Chief Strategy Officer Matthew Ball outlined the operational goals of the division in an announcement published on Thursday.

Great games remain at the center of these franchises and at the heart of XBOX. XP will partner with the best creative minds across our studios, along with trusted partners, to build on that foundation and create more ways for people to experience the worlds they love.

Leadership and executive appointments

Former Mojang Studios chief executive Kayleen Walters will lead the newly formed division as president. Before joining Microsoft, Walters spent 13 years at Lucasfilm expanding the Star Wars brand across feature films, retail licensing, and commercial agreements. At Mojang, she oversaw the growth of Minecraft from 350 million to more than 425 million copies sold, alongside securing more than 250 licensing partners. Walters also served as an executive producer on A Minecraft Movie, which earned more than $960 million at the global box office in 2025. Maria Angelidou-Smith, formerly the chief product officer at Reddit and an executive at Meta for nearly a decade, will succeed Walters as Mojang chief executive on October 19.

Walters communicated the operational shift to division personnel in a company memo following the announcement.

Fans don't just play our franchises. They watch them, wear them, attend them, celebrate them, and connect with them in countless ways.

Active productions and theme park expansion

XP inherits an active production pipeline across multiple streaming services and theatrical studios. Xbox is currently developing Minecraft Squared, a sequel to the 2025 film slated for theatrical release on July 23, 2027. Paramount is preparing a Call of Duty feature film with a script co-written by Yellowstone creator Taylor Sheridan. At Netflix, development continues on a live-action Gears of War film and an animated series based on Diablo, while Amazon Prime Video is preparing a third season of its Fallout series. Beyond streaming, Microsoft holds film and television rights to Hideo Kojima's upcoming action title Physint, and a Minecraft-themed area will open at Chessington World of Adventures near London in 2027.

Strategic overhaul and gaming engagement

The creation of XP follows broader organizational shifts initiated by Xbox Chief Executive Asha Sharma, who assumed leadership in February. In a July memo, Sharma outlined plans to cut approximately 3,200 positions across fiscal year 2027 and divested four development studios. Cross-media projects have demonstrated measurable benefits for core video game engagement across the portfolio. Player hours for Fallout titles on Xbox Game Pass increased fivefold during the release of the Prime Video adaptation's first season. Weekly active users for Minecraft increased by more than 75% year-over-year following the theatrical release of its feature adaptation in spring 2025.

Sharma summarized the broader rationale behind the organizational realignments in an internal email to employees.

Our franchises can mean more to people than the time they spend playing them.