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Xbox has officially announced the creation of XP, a new division dedicated to film, television, and broader entertainment initiatives. Led by Lucasfilm veteran and former Mojang president Kayleen Walters, the division aims to transform Xbox into a global entertainment leader by extending its gaming franchises beyond consoles.

The XP division operates across four investment pillars: Xbox Pictures for screen adaptations, Xbox Products for licensing, Xbox Partnerships for brand collaborations, and Xbox Places for live events and theme parks. Rather than acting as a production studio, Microsoft intends to secure strategic partners to manage these diverse media and experiential projects.

This expansion builds on recent successes like the Fallout series and the Minecraft movie, which significantly boosted player engagement for their respective games. Future projects include a Minecraft movie sequel, a third season of Fallout, a Call of Duty film, and a Netflix-produced Diablo animated series. Additionally, the company is developing a Minecraft theme park set to open next year.

While this initiative mirrors the failed 2012 Xbox Entertainment Studios project, Microsoft is now emphasizing a more collaborative approach. The strategy is part of a broader organizational shift under CEO Asha Sharma, which also includes appointing Maria Angelidou-Smith as the new CEO of Mojang to oversee the continued growth of the world's best-selling game.

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