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XBOX is stepping outside of games. On October 8, 2026, Microsoft announced the formation of XP, a new division dedicated to expanding XBOX IP beyond games.
The name XP is a play on the gaming term Experience Points. It covers four areas — film and television, licensed products, live events, and partnerships — consolidating functions that until now had been spread across multiple teams inside XBOX.
Kayleen Walters is taking over as president. She has been leading Mojang, and before joining XBOX she spent 13 years at Lucasfilm. Since moving to XBOX, she grew the Minecraft consumer products business into a multibillion-dollar operation with more than 250 licensees.
This article breaks down what sits inside XP’s four areas, Kayleen Walters’ background, the leadership change at Mojang, and where XP fits within XBOX’s overall strategy.
What are XP’s four areas? Film, products, places, and partnerships
XP is made up of four areas: XBOX PICTURES, XBOX PRODUCTS, XBOX PLACES, and XBOX PARTNERSHIPS.
| Group | Area of responsibility |
|---|---|
| XBOX PICTURES | Film, television, and other screen adaptations |
| XBOX PRODUCTS | Licensed products and merchandise |
| XBOX PLACES | Live events, immersive experiences, attractions, broadcast, theme parks |
| XBOX PARTNERSHIPS | Partnerships with creators and brands, sponsorships |
The odd one out among the four is XBOX PLACES. On top of live events and immersive experiences, its listed responsibilities stretch all the way to broadcast and theme parks. We have reached the era where theme parks sit on a game company’s org chart.
The announcement went out under the headings “Introducing XP — Building more ways to experience the worlds we love” and “New Leadership Appointments and XBOX Division.” That phrase “worlds we love” shows a mindset that treats IP as a world.
Why consolidate the division now?
The goal is to pull together functions that had been spread across multiple teams inside XBOX. Separate teams used to own the film conversation, the merchandise conversation, and the events conversation; now they fold into one division.
Whether a reorg like this works comes down to decision speed. If separate teams independently decide whether an IP becomes a film, a product line, or an event, you can never build a coherent rollout for any one property. As a rationale for consolidation, it holds up.
Let me note the concern too. Creating an organization produces nothing by itself. Whether XP is actually working can’t be judged until the first project surfaces. As of October 2026, no screen adaptation plan for a specific title has been announced.
Who is Kayleen Walters?
Kayleen Walters, who takes the president role at XP, has been leading Mojang. Before joining XBOX she spent 13 years at Lucasfilm.
That combination of experience is a strong fit. Lucasfilm, through Star Wars licensing, is one of the companies with the longest history of running IP outside of games. Thirteen years there. And after moving over, she grew the Minecraft consumer products business into a multibillion-dollar operation with more than 250 licensees.
Minecraft is practically the textbook case for taking IP beyond games. A single block became a toy, then stationery, then a movie. Putting the person who delivered those numbers at the head of XP is a completely consistent appointment.
Alongside this, Maria Angelidou-Smith becomes the new CEO of Mojang, taking over operation of Minecraft itself.
Where does XP sit within XBOX’s overall strategy?
In July of this year, XBOX CEO Asha Sharma laid out four priorities: Core, Content, Creation, and Connection. This reorg is positioned as supporting two of them, Creation and Connection.
Core is the platform itself, and Content is the games themselves. Creation and Connection, by contrast, point at the people who make things and at the bonds between them. XP owns the latter, and the role reads as getting outside of games to multiply the points of contact with fans.
On April 23, 2026 (U.S. time), Asha Sharma and Matt Booty jointly sent a “We Are Xbox” manifesto to employees worldwide. The strategy was put into words in April, and the organization was built in October.
Personally, I think that order is healthy. They didn’t build an organization and then look for a reason — they stated the strategy and then built the vessel. Whether that translates into results is a separate question.
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Summary: the key points on XBOX’s new XP division
On October 8, 2026, Microsoft announced the formation of XP, a new division dedicated to expanding XBOX IP beyond games. The name is a play on the gaming term Experience Points.
It consists of four areas: XBOX PICTURES (screen adaptations), XBOX PRODUCTS (licensed products), XBOX PLACES (live events, immersive experiences, attractions, broadcast, theme parks), and XBOX PARTNERSHIPS (partnerships with creators and brands, sponsorships). It consolidates functions that had been spread across multiple teams inside XBOX.
The president is Kayleen Walters. She has been leading Mojang, spent 13 years at Lucasfilm before joining XBOX, and after moving over grew the Minecraft consumer products business into a multibillion-dollar operation with more than 250 licensees. Maria Angelidou-Smith is Mojang’s new CEO. Of the four priorities XBOX CEO Asha Sharma set out in July — Core, Content, Creation, and Connection — the reorg is positioned as supporting Creation and Connection.
Installing the person who built Minecraft’s merchandise business into a multibillion-dollar operation as president tells you this division is serious. Of the four areas, XBOX PLACES — with theme parks inside its scope — is the hardest to predict going forward. But building an organization creates nothing on its own. I’m holding my evaluation until the first concrete project appears.
If an XBOX theme park ever happens, I fully intend to camp out in my favorite character’s zone.
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Nokko Oda
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