Xbox has established a new business unit called Xbox XP to handle the commercial expansion of its video game franchises beyond traditional software platforms. Led by former Mojang head Kayleen Walters, the division focuses on film and television projects, retail products, physical venues, and brand deals. The organizational change occurs while Microsoft's gaming division undergoes concurrent developer layoffs and studio closures across its internal game development teams.
Four Core Investment Pillars
The new Xbox XP unit—short for experience points—consolidates non-gaming operations into four distinct operational areas. Xbox Pictures oversees film, television, and linear storytelling projects adapted from Microsoft's game portfolio. Xbox Products handles licensed merchandise and consumer goods tied to major franchises. Xbox Places manages live events, broadcasts, and physical destinations, including major events like BlizzCon. Finally, Xbox Partnerships develops commercial sponsorships, brand arrangements, and collaborations with outside creators.
Executive Leadership and Background
Division head Kayleen Walters previously served as president of Minecraft developer Mojang and held franchise development roles at Microsoft for nearly a decade. Prior to her time at Microsoft, Walters spent thirteen years at Lucasfilm, concluding her tenure as vice president of franchise marketing. Internal messaging from Xbox CEO Asha Sharma indicates the consolidated group is designed to maintain fan engagement across broader media channels outside of playing games.
Media Strategy Amid Studio Downsizing
The creation of Xbox XP reflects an emphasis on multi-platform media licensing, even as Microsoft cuts staffing and closes several internal game development studios. This initiative marks Xbox's second formal effort to establish a dedicated entertainment business. Microsoft previously launched Xbox Entertainment Studios in 2012 to produce original video content for the Xbox 360 console, an effort that was shuttered in 2014.
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Source: As it lays off developers and closes studios, Xbox gets into the movie business
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