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Xbox Launches New Entertainment Division XP
Confirmed
In Short: Xbox CEO Asha Sharma announced the formation of a new entertainment division called XP, which will focus on expanding the reach of popular game franchises beyond video games through film, TV, consumer products, and live experiences.
Xbox CEO Asha Sharma announced the formation of a new entertainment division called XP, which will focus on expanding the reach of popular game franchises beyond video games through film, TV, consumer products, and live experiences.
Walters emphasized in an internal email that XP is about finding the right creative partners to expand Xbox franchises in authentic ways, rather than operating as a production company.
The new division will include areas such as Xbox Pictures, Xbox Products, Xbox Partnerships, and Xbox Places, focusing on film and TV adaptations, consumer products, and live experiences.
Microsoft has been restructuring under Sharma, with significant layoffs and studio closures affecting the Xbox game divisions, impacting up to 3,200 jobs.
Despite past failures, such as the Xbox Entertainment Studios in 2012, Microsoft is optimistic about XP’s potential, citing the success of 'A Minecraft Movie' as a model.
XP aims to replicate the success of 'A Minecraft Movie' for other popular franchises like Call of Duty, Fallout, Gears of War, and Halo.
Walters will be succeeded as CEO of Mojang by Maria Angelidou-Smith, formerly the chief product officer at Reddit.
Sharma highlighted the importance of community engagement, noting that Minecraft has grown from 350 million units sold to over 425 million, with the movie achieving the biggest opening weekend for a video game adaptation.
Xbox recently hosted an expanded BlizzCon and launched a WWE-themed event for 'Gears of War: E-Day,' showcasing its commitment to expanding its franchises beyond gaming.
The new division reflects Microsoft's strategy to broaden its entertainment offerings and compete more effectively in the global entertainment market.
Background
Minecraft is a sandbox video game developed and published by the Swedish company Mojang Studios. Following its initial public alpha release as an early access title on 17 May 2009, it was formally released on 18 November 2011 for personal computers.
What's confirmed
- And here’s an internal email published on Xbox Wire from Sharma: At Town Hall on Tuesday, I talked about the four Cs and the choices we are making to put them into practice.
What's still developing
- It’s an exciting new direction for Microsoft to take advantage of the boom in game-related movies and TV shows, but it’s also a sharp contrast to layoffs at the Xbox game divisions, which started in June and are expected to hit 3,200 jobs.
- Some of us remember back to the bad old days of 2012, when Microsoft created Xbox Entertainment Studios, which ended in failure and layoffs in Hollywood.
- That included an abortive Halo film from Steven Spielberg.
- It will be headed up by Kayleen Walters, a Lucasfilm veteran who moves over from her most recent post as president of Minecraft maker Mojang, where she also served as an executive producer on last year's A Minecraft Movie.
- Halo: Campaign Evolved might be getting a horde mode as a skeleton crew works on one last update before Activision takes over the franchise Gears of War: E-Day including women commanders and soldiers is nothing new Battlefield 6 joins the subscription service this month, but so do a bunch of neat-looking indies Gears of War: E-Day is good, but will The Coalition get a chance to make more games before Xbox starts making cuts?
- Walters has been with Microsoft for eight years, working on Minecraft the entire time, including as executive producer on A Minecraft Movie.
- Further, a Call of Duty movie from Taylor Sheridan and Peter Berg is in the works, a Diablo animated series for Netflix has been announced, and a new project with Hideo Kojima, PHYSINT, is already looking toward film and TV adaptation opportunities.
- There have been thousands of layoffs and quite a few studios shuttered.
- (Yes, Fallout has already had success as an Amazon Prime Video series — season three is on the way — and Halo has already failed as a Paramount series, but there are more opportunities for adaption.) A Minecraft Movie, the top-earning film of 2025, has a sequel ( Minecraft Squared ) in production.