Xbox has announced the formation of a new business unit called XP (Xbox Product), a division dedicated to expanding its game franchises through licensing deals. This initiative comes as the company continues a significant wave of layoffs, aiming to cut a total of 3,200 employees.
XP aims to capitalize on the success of recent media adaptations like the Minecraft movie and the Fallout TV show. The division will focus on four key areas: Xbox Pictures for film and TV adaptations, Xbox Products for merchandise, Xbox Places for live events and attractions, and Xbox Partnerships for sponsorships and collaborations. Xbox chief strategy officer Matthew Ball stated that XP will "partner with the best creative minds across our studios, along with trusted partners, to build on that foundation and create more ways for people to experience the worlds they love."
This strategic shift towards licensing and expanded media ventures follows comments from Xbox boss Asha Sharma, who indicated a focus on "the right partnerships" and "the right operating model" to ensure Xbox's success. The company is reportedly exploring ways to generate more consistent revenue from its major franchises, alongside internal developments such as assigning Obsidian to a new Fallout game.
In parallel with the XP announcement, Xbox revealed a leadership change at Mojang, the developer of Minecraft. Maria Angelidou-Smith has been appointed as the new CEO of Mojang. Angelidou-Smith brings nearly a decade of experience from Meta, where she worked on various product and monetization aspects of Facebook. According to Sharma, Angelidou-Smith was chosen for her experience in building products for large-scale communities and her technical expertise in integrating creators, product, and technology.
The formation of XP and the leadership changes at Mojang occur against the backdrop of substantial layoffs within Xbox and ongoing external pressures, including a boycott movement related to Microsoft's reported ties to the Israeli military.