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Microsoft has officially unveiled XP, a new division dedicated to extending Xbox gaming franchises into broader entertainment mediums. Announced on October 8, 2026, the initiative aims to transform Xbox into a leading global entertainment company by fostering durable franchises that connect with audiences across generations.

The division is led by Kayleen Walters, the former president of Mojang Studios. Walters brings extensive experience from her tenure at Lucasfilm, where she managed the expansion of the Star Wars brand, and her successful work scaling Minecraft into a multi-billion dollar business.

XP, which stands for experience points, is structured into four distinct operational areas. These include XBOX Pictures for film and television adaptations, XBOX Products for merchandise, XBOX Partnerships for brand collaborations, and XBOX Places for physical events and theme park experiences.

According to Matthew Ball, head of strategy, the division will collaborate with creative talent from Xbox studios and external partners. This strategic move follows the recent recruitment of Hideo Kojima, who is developing Physint, a title noted for its heavy integration of cinematic elements.

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