Xbox Launches XP Division for Film, TV, Merch and Theme Parks, Led by Kayleen Walters

Xbox has created a new division called XP to carry its game franchises into film, television, merchandise, live events and brand partnerships. Xbox CEO Asha Sharma announced it on October 8 alongside a leadership change at Minecraft, and Kayleen Walters will run it (Game Developer).

What XP is

The name is a play on Experience Points. The official announcement, an Xbox Wire post written by chief strategy officer Matthew Ball, groups the division into four areas (TrueAchievements, LevelUp):

Unit	What it covers
Xbox Pictures	Film and television adaptations
Xbox Products	Licensing and merchandise
Xbox Places	Live events, broadcasts, attractions, theme parks and location-based experiences
Xbox Partnerships	Sponsors, creators and brand collaborations

Ball said games remain Xbox's main focus, according to LevelUp. GamesBeat reported that Xbox describes XP as "not a production company" that will work with outside creative partners. Windows Central, which reported the news early, pointed to partnership work that already exists, including an IKEA furniture line, a Blizzard promotion with McDonald's in the UK and Fanta tie-ins with Game Pass. It also named Fallout, Call of Duty and Candy Crush as franchises XP could draw on, though that list is the outlet's reading and not an official roster.

Who runs it

Walters moves from president of Mojang to president of XP and reports to Sharma (Game Developer). Windows Central used the title XP CEO, so the exact title differs between outlets. She spent 13 years at Lucasfilm before joining Minecraft and was an executive producer on A Minecraft Movie. Reports say Minecraft sales grew from 350 million to more than 425 million units under her leadership, and that a sequel to the film is in production with Walters credited as a producer (God is a Geek).

Maria Angelidou-Smith, Reddit's former chief product officer, replaces her and becomes CEO of Mojang and Minecraft on October 19 (Cybernews). GamesBeat reported that she previously led Facebook Groups at Meta and worked as a product and technology leader at Personio.

Where it came from

Windows Central tied XP to a recent internal town hall at which Sharma described four areas of focus. It said XP covers the Creator and Connection areas, while most of the attention at the session went to Core and Content. At that town hall, Sharma told staff Xbox had returned to growth and that its next hardware would be a family of devices. XP is the first concrete structure to come out of that strategy.

GamesBeat said Xbox's stated ambition is to become the world's number one entertainment company. The same report noted that Xbox's games division has been cutting jobs since June, with layoffs expected to reach 3,200. Xbox has not linked the two.

The caution flag

Windows Central's own analysis was sceptical. It noted that earlier attempts, such as Xbox Entertainment Studios, did not succeed, and called XP's outcome uncertain. The open question is whether a dedicated division adds real coordination and quality control, or simply another layer between studios and the outside partners who will make the films and products.

The announcement covers structure and leadership only. Xbox has not said how XP will be funded or measured, and it names no new projects, dates or partners. Nothing announced so far changes how Xbox games are made or sold.

What it means for Minecraft

Minecraft is the template. Walters built its merchandising and licensing model, and the XP announcement leans heavily on that record. Her move puts a new executive in charge of Minecraft just as the approach she developed there is being scaled up across the rest of Xbox.

What to watch next

Watch for the first projects XP names, since the announcement lists no new titles, dates or partners. Watch Angelidou-Smith's first moves at Mojang after October 19, and whether Xbox publishes financial targets for XP.

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