Microsoft Unveils Xbox XP, Embracing a New Era of Movies and TV Integration

In a bold move to reshape its gaming landscape, Xbox has unveiled Xbox XP, a new division that will encompass “film and television, consumer products, strategic partnerships, and live experiences.”

This announcement follows the success of 2025’s A Minecraft Movie, which performed exceptionally well at the box office, alongside the popularity of Prime Video’s Fallout series.

Matthew Ball, Xbox’s chief strategy officer, shared details about XP’s focus areas in a recent communication. The division will concentrate on four key investment sectors.

Kayleen Walters, who has a rich background with Lucasfilm and most recently served as president of Minecraft developer Mojang, will lead XP. During her tenure at Mojang, she was also the executive producer for A Minecraft Movie. Mari Angelidou-Smith, formerly with Meta and Reddit, will take over as head of Mojang. Both will report directly to Asha Sharma, the CEO of Xbox.

Ball emphasized that XP consolidates various capabilities that have existed across Xbox teams for years, aligning them with a unified mission: to expand the reach of Xbox franchises, foster deeper connections with players and new fans, and create opportunities for these communities to thrive globally.

“Great games remain at the center of these franchises and at the heart of Xbox,” Ball noted. “XP will collaborate with top creative talents from our studios and trusted partners to build on that foundation and enhance how players engage with the worlds they cherish.”

This announcement marks another significant step from Sharma, who took on the CEO role earlier this year. Her leadership has been characterized by a strategic shift for the company, which has included layoffs, studio closures, and game cancellations. Xbox remains a focal point for the Boycott, Divestment, and Sanctions (BDS) movement.

While Xbox Pictures is just one of the four investment areas within XP, it certainly stands out. Xbox properties have already made waves on screen, particularly with A Minecraft Movie. Other adaptations include the short-lived Halo series on Paramount Plus, which has garnered a dedicated fanbase.

Looking ahead, Xbox has several adaptations in the pipeline. A sequel to A Minecraft Movie, titled A Minecraft Movie Squared, is in development, along with the third season of Amazon Prime’s Fallout. Additionally, a Call of Duty movie is being produced by Peter Berg and Taylor Sheridan (known for Yellowstone and Sicario). At this year’s BlizzCon, it was announced that a Diablo animated series is also in the works for Netflix. With the establishment of XP, fans can expect even more adaptations in the future, potentially including collaborations with Hideo Kojima, especially following Xbox’s deal that saved the espionage game Physint from cancellation by Sony.

Microsoft has previously made attempts to penetrate Hollywood more aggressively. In 2013, ahead of the Xbox One launch, the company established Xbox Entertainment Studios, led by former CBS Television executive Nancy Tellem. This initiative aimed to create scripted, reality, and interactive content for Xbox. However, the studio was closed the following year.