Xbox Is Going Bigger On Movies, TV, And More With New XP Division

Xbox has officially unveiled a new division dedicated to movies and TV, called XP. The new branch of Xbox will be headed by Lucasfilm veteran Kayleen Walters, who had previously served as president of Minecraft studio Mojang and an executive producer on A Minecraft Movie.

“At Mojang, her record speaks for itself,” Xbox chief strategy officer Matthew Ball wrote in a press statement. “Under her tenure, Minecraft grew from an already-record setting 350 million units sold to over 425 million, its merchandising business became one of the top 20 globally. A Minecraft Movie had the biggest opening weekend ever for a video game adaptation and finished #1 at the domestic box office, and Mojang secured the first of many theme park placements to come.”

According to Xbox, XP will focus on four key areas:

Xbox Pictures
Xbox Products
Xbox Places
Xbox Partnerships

Xbox Pictures, unsurprisingly, will handle film and television projects, as well as other forms of “linear storytelling” using Xbox IP. Xbox Products will create products that are “authentic to the fandom,” and Xbox Places will organize live events, immersive experiences, attractions, and broadcasts. Finally, Xbox Partnerships will work with creators, brands, and communities to develop new experiences, sponsorships, and brand partnerships.

This isn’t the first time that Xbox has made a push into multimedia; back in 2012, Xbox Entertainment Studios was unveiled with the ambitious aim of producing TV shows that would air directly on Xbox consoles. All of the big Xbox IP were part of these plans, but two years later, Xbox Entertainment Studios was shut down. Recently, Xbox has leaned more into being more than just a video game company, as Halo eventually made its way to TV screens, merchandise continues to be a major part of its business, and we’ve even seen it collaborate with IKEA.

One big grab for the studio could be Hideo Kojima, as after Sony cancelled plans to fund his stealth-action game Physint, Xbox quickly swooped in to rescue the project. Kojima’s current projects–including OD–are envisioned as more than just games. The Xbox deal is for more than just games, as it covers potential TV shows and movies.

You can look at Death Stranding for an example of how OD and Physint could be exapnded. Live-action and anime Death Stranding movies are in the works, as well as an anime series called Death Stranding: Isolations, which will stream exclusively on Disney+ in 2027.

Several projects based on Xbox IP are already in development, including a sequel to A Minecraft Movie, a third season of the Fallout TV series, and a Call of Duty movie. At BlizzCon 2026, Blizzard announced a Diablo animated series is coming to Netflix, and a Minecraft theme park is set to open in 2027.

Ball added that Xbox is now aiming to be the “number one entertainment company in the world,” which likely ties into Xbox boss Asha Sharma’s ambitious goals to entertain 1 billion people every day. At the same time, things have been grim behind the scenes at Xbox, as mass layoffs have seen thousands of people made redundant at the gaming division, with more to come. Microsoft has also divested itself of several studios, including Double Fine and Ninja Theory.