Xbox Launches 'XP' Division to Centralize Film, Merch, and Live Experiences

Key points

• Xbox has created a new division named 'XP' (Experience Points) to oversee non-gaming franchise extensions, including film, TV, consumer products, and live events.
• Kayleen Walters, previously head of Mojang, has been appointed president of the new division, while Maria Angelidou-Smith will take over as CEO of Mojang and Minecraft.
• The division formalizes four investment areas: Xbox Pictures, Xbox Products, Xbox Places, and Xbox Partnerships, consolidating previously scattered teams under a single strategy.
• Xbox is currently developing several adaptations, including a sequel to 'A Minecraft Movie,' a third season of 'Fallout,' a 'Call of Duty' film, and a 'Diablo' animated series for Netflix.
• This move is part of a broader 'reset' at Xbox, which has included layoffs, studio sales, and structural changes since CEO Asha Sharma took over in February 2026.

Background

Xbox's move to centralize non-gaming extensions follows a period of significant restructuring. In 2012, Microsoft established Xbox Entertainment Studios for film and TV adaptations, but shut it down two years later. The current 'reset' under CEO Asha Sharma has involved sweeping layoffs, the sale of studios, and the placement of Activision in charge of the Halo franchise. The new XP division aims to formalize and expand these efforts, building on the success of recent adaptations like 'A Minecraft Movie' and the 'Fallout' series.

How outlets are covering it

The Verge and Xbox Wire emphasize the strategic consolidation of existing teams under a single division to maximize franchise reach. Deadline highlights the financial and cultural success of recent adaptations, noting that 'Fallout' titles saw a 5x increase in hours played during the first season of the Prime Video series, and 'Minecraft' saw a 75% increase in weekly active users after the movie's release. Windows Central focuses on the breadth of the division's scope, from movies and TV to merchandise and theme parks. All sources agree on the leadership changes and the four main investment areas, but differ in their emphasis on the financial impact and the broader context of Xbox's 'reset.'

Why it matters

The launch of the XP division signals a significant shift in Xbox's strategy, moving beyond traditional video game development to a more holistic entertainment model. By centralizing film, TV, merchandise, and live events, Xbox aims to create a more cohesive and profitable ecosystem for its franchises. This move could set a precedent for other gaming companies looking to expand into non-gaming entertainment, and it reflects the growing importance of cross-media storytelling in the industry.

What to watch

Xbox is expected to continue developing several film and TV adaptations, including a sequel to 'A Minecraft Movie,' a third season of 'Fallout,' a 'Call of Duty' film, and a 'Diablo' animated series for Netflix. Kayleen Walters will begin building a team for the XP division, and Maria Angelidou-Smith will start her role as CEO of Mojang and Minecraft on October 19, 2026. The division's success will likely be measured by the performance of these adaptations and the growth of Xbox's consumer products and live events.