Xbox CEO Asha Sharma has introduced a new division named Xbox XP, intended to oversee the company's ventures in entertainment and partnerships. This new entity consolidates capabilities across various Xbox teams under a unified mission to expand the reach of its franchises and foster deeper connections with audiences. Kayleen Walters, formerly president of Mojang Studios, will lead this division.
Xbox XP is framed as an expansion into "four investment areas": pictures, products, places, and partnerships. While the rebranding suggests a significant strategic shift, an examination of the announcement reveals that many of the initiatives under XP are already in progress or have been for years. Projects such as the Call of Duty movie and Fallout Season 3 are cited as examples of ongoing work within this newly formalized structure. A Minecraft movie adaptation, tentatively titled 'A Minecraft Movie Squared', is also mentioned as forthcoming.
Xbox chief strategy officer Matthew Ball acknowledged on Xbox Wire that the XP division brings together capabilities that have existed across different Xbox teams for years. The stated goal is to align these efforts behind a shared mission: to help franchises reach more people, create deeper connections with players and new fans, and unlock new opportunities for these fandoms to grow. However, the announcement does not detail any new investments in film or television production, nor does it reveal new game adaptations.
The introduction of Xbox XP comes at a time when Microsoft's gaming division is facing scrutiny. This news follows reports of recent studio closures and significant layoffs within Xbox. Furthermore, Sharma reportedly claimed in a recent town hall meeting that Xbox has "started to return to growth," a statement not accompanied by specific evidence. Concurrent with this announcement, Circana reported that US Xbox hardware unit sales in August decreased by 31% compared to the previous year, marking the lowest sales figures for the month since August 2020. From an external perspective, the rebranding of existing operations into the XP division could be perceived as a public relations move, especially in light of these recent challenges and financial data.