Xbox launches XP division to expand into movies, TV, live events, and merchandise

Xbox has officially announced a new division called XP, dedicated to expanding the brand beyond games into film, television, merchandise, live events, and brand partnerships. Leading the charge is Kayleen Walters, a Lucasfilm veteran who most recently served as president of Mojang and executive producer on A Minecraft Movie.

XP is structured around four pillars. Xbox Pictures handles film, TV, and other linear storytelling projects built on Xbox IP. Xbox Products covers merchandise designed to be, in Xbox's words, authentic to the fandom. Xbox Places organizes live events, immersive experiences, attractions, and broadcasts. Xbox Partnerships works with creators, brands, and communities on sponsorships and co-branded experiences. Sharma's statement made clear why Walters got the job — under her tenure at Mojang, Minecraft grew from 350 million units sold to over 425 million, its merchandising operation broke into the global top 20, and A Minecraft Movie posted the biggest opening weekend ever for a video game adaptation before finishing number one at the domestic box office. Mojang also locked in its first theme park placement during her run.

The move reflects a broader industry trend of gaming companies pushing their IP into entertainment. Nintendo has had enormous success with The Super Mario Bros. Movie, and Sony has built a dedicated PlayStation Productions label that produced The Last of Us series for HBO. Xbox, with a library that includes Halo, Gears of War, Fable, and the entire Bethesda catalogue, has plenty of IP to work with — and Minecraft's box office performance clearly gave Microsoft the confidence to go bigger.

The announcement is still developing, so the specific projects XP is working on haven't been revealed yet. With Walters at the helm and Minecraft's entertainment success as proof of concept, expect Xbox to move quickly on filling out that pipeline.