Xbox Launches XP Division To Build Movies and Theme Parks Striving To Be the 'Number One' Brand

Xbox has created a new XP division to turn its biggest gaming franchises into films, TV, merchandise and even theme parks, as it pursues an ambition to become the 'number one' entertainment brand in the world.

The move, announced on 8 October 2026, brings Xbox's transmedia strategy under a single banner for the first time and marks a concerted push beyond the console market.

For years, Xbox has experimented with screen adaptations, from 'Halo' to 'Gears of War', but the success of projects like the 'Fallout' television series and 'A Minecraft Movie' has sharpened its focus.

XP formalises that momentum, bundling film and television, consumer products, strategic partnerships and live experiences into one unit led by Kayleen Walters, the former Mojang president who oversaw Minecraft's rapid growth and its blockbuster film.

Xbox Pictures, Products, Places and Partnerships

The new division breaks down into four investment pillars, each designed to extend Xbox's intellectual property into everyday life. Xbox Pictures will develop film, television and other linear storytelling to bring game worlds to new audiences. Xbox Products will create merchandise so fans can wear, collect and celebrate their favourite franchises.

Xbox Places will build live events, immersive attractions, broadcasts and destinations, including the kind of theme park placements already in the pipeline for Minecraft. Xbox Partnerships will work with creators, brands and communities on sponsorships and collaborative experiences.

In practice, that means more screen adaptations, more merchandise, more events and more brand tie-ins across Xbox's catalogue, from Minecraft to Call of Duty and beyond. It is a transmedia plan, but also a recognition that fans do not just play these franchises, they watch them, wear them and attend them, as Walters put it in an internal email.

Kayleen Walters Takes the Helm

Walters is no stranger to franchise building. She spent 13 years at Lucasfilm helping guide 'Star Wars' across films, products and partnerships, then moved to Mojang where Minecraft sales climbed from 350 million units to more than 425 million under her tenure.

She also served as executive producer on 'A Minecraft Movie', which posted the biggest opening weekend ever for a video game adaptation and finished number one at the domestic box office. Her team at Mojang secured the first of several planned Minecraft theme parks, a proof of concept for the Places pillar.

She will transition from Mojang to lead XP, with Maria Angelidou-Smith joining Xbox as chief executive of Mojang and Minecraft. Walters has said XP was created from a simple belief: the world's most beloved gaming franchises can reach people far beyond the boundaries of the game itself.

Whether that belief translates into another Minecraft-sized hit remains to be seen, but the infrastructure is now in place.

What happens next is a question of execution. Xbox has the IP, the partners and a dedicated division. The question is whether audiences will embrace more game-to-screen projects in a market already crowded with adaptations.

Nothing is confirmed yet so everything should be taken with a grain of salt, but the overall direction is clear.