Xbox has introduced a brand‑new business unit called the XP division, whose sole purpose is to extend its most beloved franchises beyond the console and into a wide array of media formats. The initiative covers everything from television adaptations and feature films to licensed merchandise, sponsorship deals, and even physical experiences such as theme parks and live events.
By centralising these efforts under one roof, Microsoft hopes to turn its gaming IPs into true transmedia ecosystems that can engage fans wherever they are. The division will be led by Kayleen Walters, who currently serves as president of Mojang Studios, the studio behind Minecraft.
Walters brings a deep background in franchise development, having spent eight years at Microsoft shaping the direction of its most valuable gaming properties. Prior to her tenure at Microsoft, she spent 13 years at Lucasfilm, where she rose to the position of vice‑president of franchise marketing and integrated planning, giving her a solid track record of turning cinematic universes into multi‑platform experiences.
Walters was appointed head of Mojang in February, succeeding Åsa Bredin, who stepped down to pursue personal interests outside of work. In her new role, Walters will hand over the day‑to‑day leadership of Mojang to Maria Angelidou‑Smith, a former chief product officer at Reddit who also spent nearly a decade at Facebook. Angelidou‑Smith’s experience building large‑scale community products and her technical expertise are seen as complementary to the creative vision required for the XP division. The XP unit will be organised into four distinct pillars: 1.
**Xbox Pictures** – responsible for translating Xbox franchises into movies and television series, overseeing everything from script development to production and distribution. 2.
**Xbox Products** – focused on licensing, merchandising, and retail partnerships that bring physical goods to fans. 3.
**Xbox Partnerships** – dedicated to securing sponsorships and strategic brand alliances that can amplify the reach of Xbox properties. 4.
**Xbox Places** – tasked with creating location‑based experiences such as theme parks, live‑action shows, and other immersive events that allow fans to step directly into the worlds they love. In an internal email circulated to Xbox staff, division head Asha Sharma emphasized the importance of preserving the core appeal of each franchise while expanding its presence. "Our franchises mean more to people than the time they spend playing them," Sharma wrote.
"Kayleen knows how to build those experiences with the industry without losing what made people care about the franchise in the first place." When asked about Angelidou‑Smith’s appointment, Sharma added, "We wanted someone who has built products for communities at enormous scale, who is deeply technical, and who understands how creators, product, technology, and monetisation come together. Maria brings a rare combination of those experiences." One of the first projects highlighted under the XP banner is the **Minecraft World** destination, slated to open at Chessington World of Adventures in the United Kingdom in 2027. The partnership between Microsoft and Merlin Entertainments, which owns Chessington, was announced in 2024 and involves an investment of more than $110 million to create two Minecraft‑themed attractions. Walters explained the rationale behind the collaboration: "We are everywhere digitally, Merlin is everywhere physically.
It’s about how we expand Minecraft beyond the game. Mojang and Microsoft are experts on Minecraft and the brand; Merlin are the experts on location‑based experiences. It’s a shared vision." Walters also served as executive producer on **A Minecraft Movie**, released in 2025. The film earned $550 million in its first ten days, prompting a sequel that is scheduled for release on July 23, 2027.
These cinematic successes illustrate the potential revenue streams that can be unlocked when a gaming IP is thoughtfully adapted for the big screen. The XP division will also supervise the **Fallout TV series**, which has become a hit on Amazon Prime Video and has driven a noticeable uptick in sales of the franchise’s back‑catalogue as well as increased activity in the mobile game Fallout Shelter. By contrast, the **Halo TV series** struggled to find a lasting audience, lasting only two seasons on Paramount+ before its cancellation in 2024.
Meanwhile, a **Gears of War** movie—intended to explore the origin story of the elite Delta Squad—is currently in development at Netflix, further expanding the portfolio of Xbox‑based film projects. The creation of the XP division comes amid a broader restructuring of Microsoft’s gaming operations.
Earlier this year, Sharma announced a "reset" that resulted in roughly 3,200 job cuts and the divestiture of five development studios. Industry observers, such as GamesIndustry.biz contributing editor Rob Fahey, have questioned the direction of the reset, noting that a clear, public vision for Xbox’s post‑reset future has yet to emerge.
By consolidating film, television, merchandise, partnerships, and physical experiences under a single organisational umbrella, Xbox hopes to streamline decision‑making, reduce duplication of effort, and ultimately deliver richer, more cohesive experiences for fans. The XP division is positioned to act as the bridge between the digital worlds created by Xbox studios and the real‑world touchpoints where audiences can interact with those worlds in new and exciting ways. If successful, this strategy could set a new standard for how video‑game publishers leverage their intellectual property across the entertainment spectrum.