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MUMBAI: Microsoft is looking to take its gaming worlds beyond the screen, betting that blockbuster franchises can score with audiences long after the controller is put down. The company’s Xbox division has launched XP, a new unit designed to bring film and television adaptations, merchandise, brand partnerships and live experiences under one roof.
Announcing the move in a blog post, Xbox chief strategy officer Matthew Ball said the division would consolidate capabilities that had previously operated across different teams. The aim is to expand the reach of Xbox franchises and create more ways for existing players and new audiences to engage with their favourite gaming universes.
XP will be led by Kayleen Walters, who is moving from her role as president of Mojang, the studio behind Minecraft. The division will work with Xbox’s game studios and external creative partners to develop opportunities across entertainment and consumer businesses. According to Bloomberg, XP will coordinate these efforts rather than function as a production company in its own right.
XP will operate across four areas, each targeting a different way to turn gaming intellectual property into broader entertainment experiences.
Xbox Pictures will focus on film and television adaptations, while Xbox Products will handle licensing and merchandise. Xbox Partnerships will develop collaborations with brands and creators, and Xbox Places will explore physical experiences, including events, attractions and theme parks.
The structure gives Microsoft a central team to coordinate projects that might otherwise be developed separately. It also reflects a wider strategy among gaming companies to build businesses around their franchises beyond game sales, reaching audiences through streaming platforms, consumer products and real-world experiences.
However, the opportunity comes with a challenge: a popular game does not automatically translate into a successful film, series or merchandise business. Each format needs to attract audiences on its own merits while retaining the appeal that made the original property successful.
Walters brings experience in developing entertainment franchises across multiple formats. Before joining Xbox, she spent 13 years at Lucasfilm working across the Star Wars franchise. At Mojang, she helped expand Minecraft’s consumer products business and served as executive producer of A Minecraft Movie.
According to Ball’s blog post, Minecraft’s sales grew from 350 million units to more than 425 million during Walters’ tenure at Mojang. He also said the franchise’s merchandise business became one of the world’s 20 largest.
The film’s performance has opened further opportunities for the block-building franchise. A sequel is already in production, while a Minecraft-themed attraction is scheduled to open in London in 2027, Bloomberg reported.
These developments illustrate the commercial potential of turning a game into a broader entertainment ecosystem. A film can introduce a franchise to people who may never have played the original game, while merchandise and attractions give existing fans more ways to engage with its characters and settings.
For Microsoft, Minecraft provides an established example of how gaming intellectual property can extend into cinema, consumer products and physical experiences. XP is intended to bring similar opportunities into a more coordinated strategy across Xbox’s wider portfolio.
Xbox already has several projects that could benefit from this approach. Its pipeline includes an animated Diablo series for Netflix, a Call of Duty film and PHYSINT, a project involving game creator Hideo Kojima that includes film and television rights.
The wider entertainment market has also demonstrated how screen adaptations can influence engagement with games. Bloomberg reported that hours played on Xbox Game Pass for Fallout games increased fivefold as the first season of the television adaptation aired.
Amazon’s Prime Video said 100 million people watched at least part of the Fallout series, which has been renewed for a third season. The figures highlight the potential for a successful adaptation to bring renewed attention to an existing game franchise and encourage viewers to explore its interactive origins.
But the relationship between screen success and game engagement is not guaranteed. Bloomberg cited Riot Games’ Netflix series Arcane, which reportedly had a budget of $250 million but did not attract many new players to its associated game.
That contrast underlines the risks involved in franchise expansion. Strong viewing figures or critical acclaim may build awareness, but converting that interest into game sales, subscriptions or merchandise purchases requires a separate commercial strategy.
XP’s role will therefore extend beyond simply commissioning more films and series. By bringing entertainment, licensing, partnerships and physical experiences together, Microsoft is seeking a more connected approach to developing and commercialising its gaming properties.
The creation of XP also brings a change at the top of Mojang. In a separate leadership announcement, Xbox chief executive Asha Sharma named Maria Angelidou-Smith as the next chief executive of Mojang and Minecraft. She will take up the role on 19 October, succeeding Walters.
Sharma said the search for Mojang’s next leader focused on experience building products for large communities, technical expertise and an understanding of how creators, technology and monetisation work together.
The appointment comes as Minecraft continues to expand beyond its core game, with films, merchandise and attractions contributing to its wider presence. Angelidou-Smith will take over leadership of the franchise as Walters moves to a role focused on developing similar opportunities across Xbox’s portfolio.
For Microsoft, XP represents an attempt to turn a collection of gaming hits into a more connected entertainment business. The test will be whether its franchises can draw audiences across multiple formats without relying solely on the popularity of the games that started them.
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