Xbox Takes on Hollywood: The Launch of XP and What It Means for Gamers
October 8, 2026Microsoft is making waves in Hollywood. The tech giant has officially launched XP, a fresh Xbox division aimed at elevating its acclaimed franchises beyond the realm of video games and diving into film, television, merchandise, live events, theme parks, and brand partnerships. While the name “XP” cleverly nods to “experience points,” the vision extends far beyond mere gaming accolades.
A New Direction Under Kayleen Walters
At the helm of this exciting initiative is Kayleen Walters, who previously served as the president of Mojang, the studio behind the wildly popular Minecraft. With over 13 years at Lucasfilm, where she played a pivotal role in the Star Wars franchise, Walters brings a wealth of experience that promises to inject creativity and vision into Xbox’s new endeavors. During her tenure at Mojang, she helped to expand its merchandising to over 250 licensees and served as an executive producer on A Minecraft Movie, along with its upcoming sequel.
Four Pillars of Expansion
XP is strategically segmented into four major areas:
Xbox Pictures
This sector will oversee film, television, and various forms of linear storytelling, aiming to introduce Xbox’s characters and worlds to audiences who may never engage with the games themselves.
Xbox Products
This division will focus on licensing and merchandise, ensuring Xbox franchises remain prevalent in the consumer landscape.
Xbox Places
Dedicated to live events, broadcasts, attractions, and theme parks, this area aims to create immersive experiences that fans can enjoy physically.
Xbox Partnerships
Collaborations with creators, brands, and communities will be central to this division’s strategy, forming partnerships that enhance brand visibility and engagement.
The comprehensive approach signifies that XP is more than just a movie studio. Microsoft envisions a centralized operation designed to redefine Xbox’s gaming franchises into broader entertainment opportunities.
The Promise of XP: Existing Projects
XP already has several exciting projects in the pipeline. Confirmed ventures include a sequel to A Minecraft Movie, a feature film based on Call of Duty, and a Diablo animated series for Netflix. These projects highlight XP’s commitment to leveraging Xbox’s extensive portfolio of intellectual properties (IPs), which has seen remarkable success; for example, the Minecraft franchise sold over 425 million units during Walters’ leadership at Mojang.
A Shift from Console Exclusivity
This new focus indicates a broader strategy where Microsoft desires its Xbox franchises to thrive beyond traditional console or PC boundaries. A successful TV show can introduce millions to a game, while films can rekindle interest in older franchises. Merchandise can engage audiences even when they aren’t actively gaming.
One notable example is the Fallout television series, which led to a significant increase in gaming activity following its release. Similarly, the attention garnered by the Minecraft film has had a positive impact on the game’s community and sales.
A Lesson from the Past: The 2012 Attempt
Interestingly, this isn’t Microsoft’s first foray into film and television. In 2012, the company launched Xbox Entertainment Studios with ambitions to create original programming. However, the endeavor was short-lived and closed down in 2014.
The strategy this time appears fundamentally different. Rather than aspiring to become a traditional Hollywood production house, XP prioritizes collaborations with established creative partners, searching for the right teams to translate its franchises into multi-media experiences effectively.
Leadership Changes at Mojang
Kayleen Walters’ transition to XP also means a new chapter for Mojang. Maria Angelidou-Smith, Reddit’s former chief product officer, has been appointed as the new CEO. Having spent nearly a decade at Meta tackling numerous product challenges, Angelidou-Smith is expected to steer Mojang in promising directions, reinforcing the creative synergy between the gaming and entertainment industries.
Conclusion: The Future of Xbox as an Entertainment Powerhouse
Microsoft’s expanded focus signals a monumental shift in how it approaches its gaming IPs. By treating major games as multi-dimensional entertainment franchises, it opens the door for more movies, television series, merchandise, live events, and physical attractions. Although the success of every franchise can’t be guaranteed, the opportunities are too significant to pass up.
Xbox is no longer about mere gameplay. It aims to create a universe where fans can watch, wear, and engage with its iconic properties, ultimately striving to evolve from a gaming brand into a comprehensive entertainment empire.

