Xbox establishes XP division to expand gaming franchises into media

Microsoft has established a new division within Xbox called XP to manage the expansion of its gaming franchises into film, television, merchandise, and live events. Kayleen Walters will serve as president of the new unit, while Maria Angelidou-Smith will take over as CEO of Mojang and Minecraft, according to an internal memo sent to employees by Xbox head Asha Sharma.

The XP division, described by the company as a play on the term “experience points,” is designed to coordinate four primary investment areas: Xbox Pictures for film and television adaptations, Xbox Products for licensing and merchandising, Xbox Partnerships for brand collaborations, and Xbox Places for location-based experiences like theme parks. The move follows a period of corporate restructuring at Microsoft, which has included multiple rounds of layoffs and a strategic pivot following the $23 billion acquisition of Activision Blizzard in 2023.

Leadership Transitions for XP and Mojang

Kayleen Walters, who previously led Mojang, will transition to her new role as president of XP. Walters brings a background in franchise management, having spent 13 years at Lucasfilm before joining Xbox, where she was an executive producer for A Minecraft Movie. She is currently a producer on the film’s sequel, which is scheduled for release on July 23, 2027.

Maria Angelidou-Smith will join Xbox as the new CEO of Mojang and Minecraft on October 19. Her background includes nearly a decade at Meta, where she led Facebook Groups, as well as executive roles at Personio and Reddit, where she served as chief product officer. Asha Sharma stated that the company sought a leader with experience in scaling community-focused products, noting that Angelidou-Smith’s technical background and understanding of monetization were key factors in the appointment.

Microsoft Leverages Gaming Properties Beyond Console Play

The creation of the XP division formalizes Microsoft’s strategy to leverage the popularity of its gaming properties beyond console play. The company cited specific growth metrics to justify the move: Fallout titles on Xbox Game Pass saw a five-fold increase in hours played following the debut of the Fallout series on Prime Video, and weekly active users for Minecraft increased by more than 75% year-over-year following the release of A Minecraft Movie in the spring of 2025.

Other upcoming projects under the XP umbrella include a third season of the Fallout series, a Call of Duty film, and an animated Diablo series for Netflix. Additionally, the company is moving into physical locations, such as the Minecraft-themed attractions set to open at the UK theme park Chessington World of Adventures in 2027, following a partnership deal with Merlin Entertainments in 2024, with Merlin investing more than $110 million.

Historical Context of Xbox Entertainment Efforts

In 2012, the company launched Xbox Entertainment Studios with plans to produce original series based on franchises such as Halo, Gears of War, and Fable. Other planned projects included Forza, State of Decay, and an unscripted street-soccer drama titled Every Street United. That division was closed after two years of operation, as the company shifted away from the “all in one” console strategy that defined the early Xbox One era.

Microsoft highlighted other expansive reaches, noting that Minecraft Live reached over 144 million people and announced the first new dimension for the game in 14 years. BlizzCon in Anaheim, California, drew 35,000 attendees and 12.5 million remote viewers. The company also pointed to collaborations such as Ikea furniture and a Gears of War takeover with WWE. This strategy follows recent industry successes, such as HBO’s The Last of Us and Sony’s revival of Resident Evil last month.

Nobody has yet deigned to outline a clear vision for what Xbox will actually look like after this reset, said GamesIndustry.biz contributing editor Rob Fahey.

“Fans don’t just play our franchises,” Walters wrote to employees in an email to her team. “They watch them, wear them, attend them, celebrate them, and connect with them in countless ways.”

Kayleen Walters, President of XP

“Our franchises can mean more to people than the time they spend playing them,” CEO Asha Sharma explained to employees in a staff memo Thursday.