Xbox wants its games to reach people who don’t own a console, and it has set up a dedicated division to do it. The new unit, called XP, was announced on October 8 by Xbox CEO Asha Sharma. Its job is to take Xbox characters and franchises beyond gaming into film, television, merchandise, live events and brand deals.
The structure is organised and tidy, almost like a corporate pitch. Xbox Pictures covers film, television and other scripted storytelling. Xbox Products covers branded merchandise. Xbox Places covers live events, immersive experiences and attractions. Xbox Partnerships handles creator sponsorships and work with other brands. In short, it is a licensing and entertainment arm, the kind Nintendo, Sony and Disney have relied on for years.
The person leading it says more about Microsoft’s plans than the press release does. Kayleen Walters, XP’s president, spent 13 years at Lucasfilm and rose to vice president of franchise marketing, overseeing the commercial rollout of Star Wars and Indiana Jones films and products. She joined Mojang in 2018 and oversaw Minecraft’s growth from 350 million copies sold to more than 425 million, alongside a much larger merchandise business. That period also produced A Minecraft Movie, which earned $163 million domestically on its opening weekend, the biggest debut ever for a video game adaptation. A sequel, A Minecraft Movie Squared, is due in July 2027, the same year the first official Minecraft World theme park opens at Chessington World of Adventures near London.
The plan seems clear: repeat what Minecraft did with the rest of Xbox’s catalogue. That is harder than it sounds. Minecraft is a global cultural phenomenon that appeals to all ages. Halo already had a TV series that never quite found its audience, and most of Microsoft’s other franchises have never been tested outside gaming. Fallout’s success on television shows the potential is real, but adaptations depend on getting the creative work right, not on putting a corporate structure in place.
The timing also deserves attention. Since Sharma took over in February 2026, she has made popular moves, including a meaningful cut to Game Pass prices, and unpopular ones, including layoffs that will eliminate more than 3,200 jobs through fiscal year 2027. Creating a new brand-expansion division while cutting the workforce suggests Xbox sees its future growth as much in intellectual property as in the games themselves.
Whether XP turns Gears, Forza or Halo into everyday cultural staples, or simply fills more store shelves with plush toys, will depend on the first projects it announces.
