Microsoft is giving its biggest gaming franchises a life beyond consoles and PCs. On October 8, 2026, Xbox announced XP, a new division focused on expanding its games into movies, television, merchandise, brand partnerships, and live experiences.
Led by former Mojang president Kayleen Walters, XP brings together work previously spread across Xbox teams. Its four investment areas are Xbox Pictures, Xbox Products, Xbox Places, and Xbox Partnerships.
The move follows Xbox CEO Asha Sharma's ambition to build a broader gaming and entertainment business. In the announcement, Xbox chief strategy officer Matthew Ball described the goal as growing games into “enduring franchises” that reach people across generations and around the world.
Here's what Xbox XP does, how its four divisions will work, and what the announcement means for players.
Emmanuel Umahi
What Is Xbox XP?
XP stands for “Experience Points,” a familiar gaming term that Microsoft is using for its new entertainment division.
Rather than focusing solely on selling games, XP will help Xbox develop more ways for people to engage with its franchises. That includes screen adaptations, consumer products, live events, attractions, and collaborations with other brands.
It is not a new console, subscription service, or game development studio. Instead, XP will coordinate Xbox's efforts to expand established gaming properties into other forms of entertainment.
Xbox says games will remain at the centre of its franchises. The goal is to build on their existing audiences rather than replace gaming with other entertainment.
What Are the Four Key Focuses of Xbox XP?
Xbox XP has four investment areas, each targeting a different part of the entertainment business.
1. Xbox Pictures: Movies and TV Adaptations
Xbox Pictures will bring Xbox characters and fictional worlds to audiences through films, television, and other forms of screen storytelling.
Microsoft already has experience with adaptations, including A Minecraft Movie and the Fallout television series. These projects demonstrate how a game franchise can reach viewers who may never have played the original title.
XP creates a dedicated division for developing such opportunities. Franchises including Halo, Gears of War, and Minecraft could offer further possibilities, although Xbox has not confirmed new adaptations for each property as part of this announcement.
2. Xbox Products: Merchandise and Licensing
Xbox Products will oversee licensed merchandise and consumer products inspired by its gaming franchises.
That could include clothing, toys, collectibles, accessories, and other products that allow fans to engage with their favourite games away from the screen.
Minecraft provides a clear example of the commercial potential. According to Xbox, the franchise's consumer-products business grew into a multibillion-dollar operation with more than 250 licensees under Walters' leadership.
The challenge will be to develop products that appeal to each franchise's community, rather than simply placing familiar logos on merchandise.
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