Xbox has officially launched a brand-new entertainment division called XP, putting a formal structure behind its push into movies, television, live experiences, and brand partnerships. Leading the charge is Kayleen Walters, a Lucasfilm veteran who most recently served as president of Mojang and executive producer on A Minecraft Movie.
The numbers behind Walters' track record make the hire hard to argue with. Under her tenure at Mojang, Minecraft grew from 350 million units sold to over 425 million. The merchandising arm became one of the top 20 globally. A Minecraft Movie posted the biggest opening weekend ever for a video game adaptation and finished at number 1 at the domestic box office. Xbox chief strategy officer Matthew Ball cited all of this in a press statement announcing the new division.
What XP actually covers
The division is organized into four distinct branches, each handling a different slice of the entertainment pie:
- Xbox Pictures handles film, television, and other forms of linear storytelling built on Xbox IP
- Xbox Products focuses on merchandise that is, in Ball's framing, "authentic to the fandom"
- Xbox Places organizes live events, immersive experiences, theme park attractions, and broadcasts
- Xbox Partnerships works with creators, brands, and communities on sponsorships and co-developed experiences
That last pillar is worth watching closely. Xbox has already shown a willingness to go outside traditional gaming partnerships, including a collaboration with IKEA, and XP Partnerships formalizes that kind of outreach.
The IP pipeline already in motion
XP isn't starting from scratch. Several projects tied to Xbox-owned franchises are already in various stages of development. A sequel to A Minecraft Movie is in the works. Fallout is heading into a third season on television. A Call of Duty movie is in development. At BlizzCon 2026, Blizzard announced a Diablo animated series coming to Netflix. A Minecraft theme park is set to open in 2027, described as "the first of many."
Then there's Hideo Kojima. After PlayStation cancelled funding for his stealth-action project Physint, Xbox stepped in to rescue it. Critically, that deal extends beyond the game itself and covers potential TV shows and movies. Kojima's other project, OD, carries similar ambitions. The Death Stranding universe offers a preview of how this could play out: a live-action film, an animated film, and an anime series called Death Stranding: Isolations are all in development, with the anime streaming exclusively on Disney+ in 2027.
A second attempt at something Xbox tried before
Here's the thing: this isn't Xbox's first attempt at building a media arm. Xbox Entertainment Studios launched in 2012 with plans to produce original TV shows airing directly on Xbox consoles, using the full catalog of Xbox IP. Two years later, the studio was shut down entirely.
The context in 2026 is meaningfully different. A Minecraft Movie proved the commercial case that Xbox IP can carry a blockbuster. The Halo TV series, whatever its critical reception, demonstrated that the audience exists. Ball's stated goal is for Xbox to become the "number-one entertainment company in the world," which connects directly to Xbox boss Asha Sharma's target of entertaining 1 billion people every day.
What complicates the picture is what's happening on the games side simultaneously. Xbox has gone through significant rounds of layoffs, with thousands of roles cut across its gaming division and more reductions signaled ahead. Double Fine and Ninja Theory were among the studios divested by Microsoft. The tension between scaling up entertainment while contracting games development is one the company hasn't fully addressed publicly.
For players already invested in the Xbox ecosystem, games like Gears of War: E-Day are hitting Game Pass right now (check out whether Gears of War: E-Day is on Xbox Game Pass for the full breakdown on tiers and access). The XP division suggests that the franchises you're playing today are being positioned as entertainment properties for the long haul, not just games.
The Kojima projects alone will be worth tracking closely. For more on what's happening across the gaming world right now, the gaming guides hub has you covered on everything from new releases to seasonal content shifts. And if you want a broader read on what Xbox titles are actually worth your time, the game reviews section breaks it all down without the marketing spin.
