Xbox Launches 'XP' Division to Expand Gaming Franchises into Film, Merch, and Live Events

Key points

• Xbox created the XP division to unify film, TV, consumer products, strategic partnerships, and live experiences under one leadership structure.
• Kayleen Walters, former president of Mojang and executive producer of 'A Minecraft Movie,' was named president of XP.
• Maria Angelidou-Smith, former Chief Product Officer at Reddit and Meta, was appointed CEO of Mojang and Minecraft, starting October 19, 2026.
• The division focuses on franchises including Minecraft, Call of Duty, Fallout, Halo, and The Elder Scrolls.
• Xbox aims to replicate the commercial success of 'A Minecraft Movie' across other properties through cross-media expansion.

Background

This move follows a strategic 'reset' at Xbox, which included significant layoffs and studio closures in 2026. The company previously acquired Activision Blizzard for $69 billion in 2023 to strengthen its gaming portfolio. Recent successes, such as the 'Fallout' TV series and 'A Minecraft Movie,' have demonstrated the potential for gaming IP to thrive in non-gaming entertainment formats.

How outlets are covering it

Variety and The Hollywood Reporter emphasize the consolidation of previously fragmented teams into a unified strategy to maximize franchise value. Deadline highlights the financial performance metrics, noting that 'Fallout' game hours increased fivefold during its TV series premiere and 'Minecraft' weekly active users rose 75% after the movie's release. All sources agree that XP is not a production company but a division designed to match IP with external partners. The Hollywood Reporter notes that while some adaptations like 'Halo' have struggled, others like 'Fallout' have succeeded, indicating a selective approach to expansion.

Why it matters

The creation of XP signals a major shift in how Microsoft views its gaming assets, treating them as holistic entertainment brands rather than just software products. This strategy could redefine the relationship between video game studios and Hollywood, potentially increasing revenue through merchandise, live events, and media adaptations while driving engagement back to the games themselves.

What to watch

Kayleen Walters will begin assembling a team for XP, drawing from both internal Xbox staff and external hires. Maria Angelidou-Smith will start her role as Mojang CEO on October 19, 2026, with an initial focus on learning from existing teams and communities. Xbox is expected to announce new projects under the XP umbrella, including potential adaptations for 'Diablo' and 'Call of Duty,' as well as the development of 'Minecraft' theme parks.