Xbox creates XP division to expand gaming franchises beyond video games
Xbox is establishing a new division called XP to centralise its non-gaming business operations, including film and television adaptations, consumer products, live events and brand partnerships. The move formalises work already being done across different Xbox teams under a single structure, with new leadership that brings fresh perspective from outside the gaming division. This represents a strategic shift in how Xbox plans to expand its franchises beyond video games.
The new XP division will be led by Kayleen Walters, who previously headed Minecraft-maker Mojang. Four key investment areas have been established: Xbox Pictures for film and television content, Xbox Products for merchandise and fan items, Xbox Places for live experiences and events, and Xbox Partnerships for creator and brand collaborations. Xbox is currently developing multiple adaptations, including a Minecraft Movie sequel, a third season of Prime Video's Fallout series, a Call of Duty film, and a Diablo animated series for Netflix. CEO Asha Sharma, who took over in February, has positioned this restructuring as part of her broader "reset" of the Xbox business following significant layoffs and studio changes.
- Xbox launches XP division to expand franchises into film, TV and live events.
- Kayleen Walters leads new centralised division with four investment areas.
- Multiple adaptations in development including Minecraft sequel and Fallout season 3.
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Video game franchises like Minecraft, Call of Duty and Fallout have massive global fan bases, and entertainment companies increasingly seek to expand these properties into films, television programmes, merchandise and live events. Xbox, a gaming division of Microsoft, owns or manages many of these franchises and has previously worked on such expansions separately across different parts of its business. It is now creating a dedicated division called XP to bring all this non-gaming work together under a single unified strategy.
The new XP division will be led by Kayleen Walters, who previously ran Mojang, the company behind Minecraft. Its focus will span four main areas: developing film and television content, creating merchandise and consumer products, organising live experiences and events, and building partnerships with creators and brands. Xbox is already developing several major adaptations, including a new Minecraft film and further series of the Fallout television show on Prime Video.
This restructuring is part of a broader overhaul of Xbox under new chief executive Asha Sharma, who took the role in February. The company has undergone significant changes, including studio closures and job cuts, as Sharma attempts to refocus the business on core strengths and new growth opportunities. Centralising this previously scattered work reflects how important these expanded franchises have become to Xbox's future strategy.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Gaming franchises represent valuable intellectual property with proven global appeal, and dedicated expansion into film, television, merchandise and live events mirrors the success of established entertainment conglomerates. A centralised division with focused leadership and strategic investment areas should enable Xbox to unlock additional revenue streams and reach audiences beyond core gamers, particularly given precedents like Minecraft's merchandise success and strong critical reception for adaptations like Castlevania and Sonic. This structured approach represents pragmatic business strategy rather than scattered experimentation.
The case against
Substantial expansion beyond core game development risks diluting Xbox's focus precisely when the company needs strong, consistent game output to compete with other platforms. The entertainment adaptation landscape remains treacherous—numerous video game adaptations have damaged beloved franchises' reputations, and traditional studios and streaming services possess greater expertise in film and television production than gaming companies typically do. Given recent Xbox layoffs, some resources and executive attention inevitably divert from the game development that built these franchises in the first place, raising legitimate questions about whether this reflects appropriate business priorities.
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Originally published by The Verge as “Xbox is launching a new film and TV division”.