Xbox Announces XP Division to Expand Gaming Franchises Into Movies, TV and More

Microsoft is looking beyond video games as it establishes XP, a new Xbox division focused on expanding its biggest franchises into movies, television, merchandise and live experiences.

In an official Xbox Wire post, the division will be led by newly appointed president Kayleen Walters, who previously held leadership roles at Lucasfilm and Mojang. The announcement follows leadership changes across Microsoft’s Xbox division, with XP bringing several existing teams together under one organization.

Microsoft says the goal is to reach audiences beyond traditional gaming while creating new opportunities for fans to engage with its properties.

XP will operate across four areas:

• Xbox Pictures: Film, television and other storytelling projects featuring Xbox franchises.
• Xbox Products: Merchandise and consumer products inspired by its games.
• Xbox Places: Live events, attractions, broadcasts and immersive experiences.
• Xbox Partnerships: Collaborations with creators, brands and communities.

The strategy isn’t entirely new for Microsoft. Xbox has already explored entertainment beyond gaming through projects such as A Minecraft Movie and Prime Video’s Fallout series. This also includes merchandise, live events, and brand collaborations. The company has also invested in live experiences, including its Xbox FanFest tour, which is coming to Toronto. Meanwhile, Xbox’s expanded partnership with Hideo Kojima Productions includes plans to explore film and television projects.

However, XP formalizes these efforts into a dedicated division rather than leaving them distributed across separate teams. Walters brings considerable experience to the position. She spent 13 years at Lucasfilm before joining Mojang, where Microsoft credits her with helping expand Minecraft into a broader entertainment franchise.

According to Xbox, Minecraft sales grew from 350 million to more than 425 million copies during her tenure. Its merchandising business also became one of the world’s top 20, while A Minecraft Movie achieved a record opening weekend for a video game adaptation. Matthew Ball, who announced the division, emphasized that games will remain central to Xbox’s strategy.

The announcement doesn’t identify specific new movies, television series or attractions currently in development under XP. Still, the move signals Microsoft’s growing interest in treating its gaming franchises as entertainment properties that can reach audiences well beyond consoles and PCs.