October 8, 2026 â Microsoftâs Xbox has announced XP, a new entertainment division designed to expand its gaming franchises into movies, television, merchandise, brand partnerships and theme park experiences. The move brings several existing entertainment operations under one leadership structure as Xbox looks to reach audiences beyond traditional gaming.
Kayleen Walters, former president of Minecraft developer Mojang Studios and executive producer of A Minecraft Movie, will lead XP. The announcement also introduces new leadership at Mojang, marking an important organizational change for one of Microsoft’s biggest gaming properties.
Xbox XP Division: Four Entertainment Businesses Explained
XP takes its name from “experience points,” a familiar gaming term. The division will coordinate four business areas previously managed across different Xbox teams.
- Xbox Pictures: Films, television series and screen adaptations of gaming franchises.
- Xbox Products: Licensed merchandise, collectibles and consumer products.
- Xbox Partnerships: Commercial collaborations with brands, creators and entertainment companies.
- Xbox Places: Live events, immersive attractions, broadcasts and theme park experiences.
According to Xbox’s official XP announcement, video games will remain central to the company’s entertainment strategy. The division is intended to expand existing franchises rather than replace game development studios.
Kayleen Walters to Lead Xbox XP After Minecraft Movie Success
Walters brings experience in gaming, licensing and Hollywood entertainment. Before joining Mojang, she spent 13 years at Lucasfilm working with the Star Wars franchise.
During her Mojang leadership, Minecraft’s lifetime sales increased from more than 350 million to over 425 million copies, according to Xbox. Its consumer products business also grew into a multibillion-dollar operation involving more than 250 licensing partners.
Walters served as an executive producer of A Minecraft Movie and is involved in its upcoming sequel. Her appointment gives Xbox a leader experienced in developing gaming properties across multiple entertainment markets.
Xbox Movies and TV: Minecraft, Fallout, Call of Duty and Diablo
Microsoft already has several gaming franchises connected to film and television projects. The new division could provide a more coordinated approach to developing these entertainment opportunities.
- Minecraft: A sequel to A Minecraft Movie is in development.
- Fallout: The Prime Video adaptation is continuing with a third season.
- Call of Duty: A movie adaptation is among the reported entertainment projects.
- Diablo: An animated series for Netflix has also been reported.
These productions were not all newly announced with XP. Microsoft has not confirmed that every major Xbox franchise will receive a film or television adaptation.
Xbox Theme Parks: Minecraft World Planned for 2027
Theme parks are among the most notable parts of Xbox’s expansion. Minecraft World is planned for Chessington World of Adventures in the United Kingdom, with an expected opening in 2027.
The attraction demonstrates how gaming properties can become physical entertainment experiences through themed environments, interactive activities and merchandise.
However, Microsoft has not announced a separate Xbox-owned theme park, additional locations or opening dates for other XP attractions.
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Maria Angelidou-Smith Named New Mojang CEO
Walters’ move to XP brings a leadership change at Mojang. Maria Angelidou-Smith will become CEO of Mojang and Minecraft on October 19, 2026.
Angelidou-Smith previously served as Reddit’s chief product officer and held senior roles at Meta and Personio. Her experience includes managing large digital communities, creator tools and consumer platforms.
Both Walters and Angelidou-Smith will report directly to Xbox CEO Asha Sharma.
The appointments follow a broader change in Microsoft’s gaming leadership. Earlier in 2026, Phil Spencer retired and Sharma took charge of Xbox. The Microsoft Gaming leadership shakeup provides context for the company’s changing management structure and strategic direction.
Microsoft Expands Xbox Entertainment Strategy Beyond Video Games
The strategy follows the commercial success of A Minecraft Movie and reflects opportunities for gaming franchises in film, streaming, licensing and live entertainment.
Microsoft previously attempted a similar expansion through Xbox Entertainment Studios, established in 2012 and closed in 2014. XP has a broader structure that includes consumer products and physical attractions alongside screen entertainment.
The announcement also comes during Xbox’s 25th anniversary year, following a period of restructuring across Microsoft’s gaming business. Earlier workforce reductions, covered in the Microsoft and Xbox layoffs report, highlighted changes taking place across the company’s operations.
XP creates a dedicated structure for developing entertainment partnerships and licensing opportunities, although Microsoft has not disclosed how much additional revenue the division is expected to generate.
Xbox XP Launch: Impact on Gamers and Game Pass Subscribers
For Xbox players, XP does not immediately change Game Pass subscriptions, console services or game development schedules.
Instead, fans could eventually see more movies, television adaptations, licensed products and live experiences based on Xbox gaming franchises.
Microsoft has not disclosed XP’s investment budget, revenue targets or a complete project release schedule. The immediate change is organizational: Xbox now has dedicated leadership overseeing entertainment expansion while keeping games at the center of its franchises.
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