Xbox has officially announced the formation of a new division named XP, dedicated to expanding its presence in movies, television, and immersive experiences. This initiative marks a significant strategic move for Xbox, aiming to grow beyond its core gaming identity.
Leading the new XP division is Kayleen Walters, a veteran of Lucasfilm who previously served as president of Mojang Studios and executive producer for "A Minecraft Movie." Xbox chief strategy officer Matthew Ball highlighted Walters's track record, citing Minecraft's growth in unit sales and merchandising under her leadership, as well as the success of "A Minecraft Movie" and securing theme park placements.
The XP division will focus on four key areas: Xbox Pictures, Xbox Products, Xbox Places, and Xbox Partnerships. Xbox Pictures will be responsible for film and television projects, along with other linear storytelling formats utilizing Xbox intellectual property. Xbox Products aims to develop merchandise that resonates authentically with fan bases. Xbox Places will organize live events, immersive experiences, attractions, and broadcasts. Lastly, Xbox Partnerships will collaborate with creators, brands, and communities to foster new experiences and brand opportunities.
This endeavor represents Xbox's latest attempt to branch into multimedia content. Previously, in 2012, Xbox Entertainment Studios was established with the goal of producing content for Xbox consoles, though it was later shut down in 2014. More recently, Xbox has shown increased interest in diverse media, with "Halo" adapted into a TV series, continued expansion of its merchandise business, and collaborations such as the one with IKEA.
The strategic expansion also aligns with the development of Hideo Kojima's projects, including "OD" and "Physint." After initial plans with Sony were altered, Xbox stepped in to support Kojima's stealth-action game, with the deal extending beyond gaming to encompass potential TV shows and movies. This mirrors the multimedia adaptations of "Death Stranding," which include live-action and anime films, and an anime series titled "Death Stranding: Isolations," slated for exclusive streaming on Disney+ in 2027.
Xbox's ambition under this new division appears to be substantial, with Ball stating a goal for Xbox to become the "number one entertainment company in the world." This objective seems to complement Xbox boss Asha Sharma's broader vision of engaging 1 billion people daily. However, this expansion occurs against a backdrop of significant layoffs within Xbox's gaming division and the divestment of studios like Double Fine and Ninja Theory.