Microsoft has established a new division within Xbox, named XP, dedicated to expanding its intellectual property into non-gaming sectors. This strategic move, mirroring efforts by Nintendo and Sony, will oversee film and television production, merchandise, and other partnerships.
The XP division is structured around four key branches: Xbox Places, Xbox Pictures, Xbox Partnerships, and Xbox Products. According to Matthew Ball, chief strategy officer at Xbox, the initiative aims to "help our franchises reach more people, create deeper connections with players and new fans, and unlock new opportunities for these fandoms to grow around the world." He emphasized that while games remain central, XP will collaborate with internal studios and external partners to extend beloved game worlds into new media.
Kayleen Walters has been appointed to lead XP. Walters brings extensive experience from her previous roles, including studio head of Mojang Studios and vice president of franchise development at Microsoft. During her tenure at Mojang, she oversaw Minecraft's growth to over 425 million units sold and significantly expanded its merchandising business. The successful Minecraft movie, which achieved the biggest opening weekend for a video game adaptation, and planned theme park attractions also fall under her purview.
Xbox's expansion into film and TV is influenced by the commercial success of other video game adaptations, such as The Super Mario Bros. Movie and Sony's recent Resident Evil film. The Minecraft movie itself grossed over $550 million globally within two weeks of its release, prompting discussions for a sequel. Xbox has also seen viewership success with Amazon's Fallout series, which garnered 83 million viewers in its first 13 weeks, though its Halo TV show was canceled after two seasons.
Beyond screen adaptations, Xbox Places will manage physical ventures like the upcoming Minecraft-themed attractions in the US and UK, representing an investment of over £85 million. These attractions are slated to open between 2026 and 2027.
This diversification effort by Xbox comes at a time of significant restructuring within Microsoft's gaming division, marked by recent layoffs. The establishment of XP suggests a strategic pivot to explore new revenue streams and further capitalize on its existing game franchises outside of traditional gaming platforms.