Microsoft is expanding Xbox beyond games with Xbox XP, a new division designed to build its franchises across film, television, products, partnerships, and live experiences while keeping games at the center. The company has launched XP, a new division that brings Xbox’s existing work in film and television, consumer products, partnerships, and live experiences under one division.
This new division was officially unveiled on October 8, 2026, and brings together the various entertainment activities previously undertaken by various Xbox divisions into one single entity. Kayleen Walters has been appointed as the new president of this division, which seeks to leverage the success of various franchises such as Minecraft, among others.
The development indicates the ambitions of Microsoft to expand its gaming brands into entertainment franchises that go beyond game sales. Nonetheless, the XP announcement itself did not reveal a new slate of movies, TV series, theme parks, or other franchise-specific projects.
Xbox XP Division: What Is Xbox’s New XP Division?
XP is Xbox’s new organizational structure for managing and expanding opportunities surrounding its gaming franchises outside traditional gameplay. Instead of treating movies, consumer products, events, and brand collaborations as separate activities, Xbox is bringing them together under a unified strategy.
According to Microsoft’s announcement on Xbox Wire, the goal is to help its franchises reach audiences through more entertainment experiences while keeping games at the center of each property.
Xbox Chief Strategy Officer Matthew Ball described the broader ambition as becoming the “number one entertainment company in the world.” XP provides an organizational framework for pursuing that goal by connecting gaming intellectual property with businesses that can extend its commercial and cultural reach.
Four Pillars Will Shape XP’s Strategy
XP consists of four divisions, each responsible for a different part of the franchise expansion strategy.
- Xbox Pictures: Film, television, and other forms of linear storytelling.
- Xbox Products: Licensing, merchandise, and consumer products inspired by Xbox franchises.
- Xbox Places: Broadcasts, live events, immersive experiences, attractions, and destinations.
- Xbox Partnerships: Creators, brands, sponsorships, and other partnerships.
These four pillars, taken together, form a foundation for the development of entertainment options based on the Xbox properties. For instance, a successful game may have the potential for a TV show, merchandise sales, involvement in live events, and partnerships with non-gaming companies. Importantly, Xbox Places identifies attractions and destinations as an area of business interest. Its inclusion does not mean Microsoft has confirmed plans to build a new theme park.
Kayleen Walters Will Lead the New Division
Microsoft has appointed Kayleen Walters as president of XP. Her experience as Head of Mojang Studios, the studio behind Minecraft, provides a relevant example of how a gaming franchise can expand into different entertainment and consumer markets.
Microsoft says that under Walters’ tenure, Minecraft grew from 350 million units sold to more than 425 million. This growth accompanied substantial merchandising expansion, the release of A Minecraft Movieand expansion into theme-park placements, according to Xbox’s announcement.
These are the exact reasons why Microsoft sees great potential in leveraging its gaming franchises through other industries. Instead of taking the popularity of a game as a final step, the company can leverage its audience base to launch stories and products that maintain the franchise’s relevancy between the launches of new games.
Kayleen Walters’ appointment shows us that the XP strategy has much in common with a franchise that has already proven successful in bringing gaming intellectual property to wider audiences.
Minecraft Shows the Kind of Expansion XP Could Pursue
Minecraft provides the clearest example of the strategy Microsoft wants to scale across its gaming portfolio. Its growth has extended beyond the original game into merchandise, a feature film, and location-based entertainment experiences.
This approach creates several ways to engage audiences. Players can experience a franchise through its games, while moviegoers, collectors, and visitors to themed attractions can encounter the same intellectual property through different channels.
Microsoft has an organization within Xbox responsible for managing similar strategies for all its franchises. XP could eventually work across Xbox’s wider franchise portfolio, but Microsoft has not announced franchise-specific XP projects as part of the division’s unveiling. The point is that although Minecraft demonstrates how this kind of expansion can work, it does not mean that other franchises should follow the same path.
Why Microsoft Wants Xbox Beyond Games
The move into XP represents a strategic departure for Microsoft in terms of the longer-term value of its gaming franchises. While console sales and game sales will continue to be key, entertainment franchises have the potential to provide engagement and commercial opportunities in other markets.
Movies and television can introduce gaming worlds to audiences who may never purchase the original games. Merchandise can keep characters and fictional universes visible between releases, while events and immersive attractions offer fans additional ways to interact with their favorite properties.
Partnering can help a franchise grow even more by connecting it with existing brands, creators, and commercial platforms. Microsoft will find it easier to develop the franchises within one division and uncover opportunities that might not otherwise be realized. This strategy also follows an entertainment industry trend of using intellectual property that has already been established in games, streaming, film, consumer goods, and live events. Xbox enters this strategy with a large portfolio of established gaming franchises and communities, giving XP existing properties to build around.
What XP Means for Xbox’s Future
The XP announcement is simply an organizational announcement rather than the announcement of a set of new entertainment projects that have been verified. Microsoft has put the division in place and set out its responsibilities. The XP announcement itself did not reveal a new slate of movies, TV series, theme parks, or other franchise-specific projects.
Xbox Places are particularly important to interpret correctly. Its remit includes attractions, destinations, and immersive experiences, creating room for future opportunities. However, no specific new theme park or opening date was announced alongside XP.
On the other hand, organizing screen adaptations and consumer product lines in a unified fashion does not mean that all Xbox properties will get a movie adaptation, merchandise line or TV show. The value of the new division comes from the strategy that is to be formed due to the four different aspects combined.
The Bigger Picture
The XP division at Xbox shows a more systematic way of creating entertainment franchises based on video games. Under the leadership of Kayleen Walters, Microsoft has learned from the success of Minecraft and set up an entity that can analyze possibilities within its portfolio.
Whether the strategy will be successful or not depends on what projects the company creates and how well it manages to maintain the uniqueness of each franchise.
For now, the important news is not about any new movies or theme parks that have been announced. What is important is that Microsoft has created a dedicated Xbox division to coordinate and expand the non-game opportunities around its franchises. If Minecraft shows what a gaming franchise can turn into beyond its gaming nature, then XP is Microsoft’s attempt to systematize this process.
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