Microsoft Launches New Xbox Division XP with Focus on Cross-Media Growth
- Microsoft has launched a new Xbox division called XP, consisting of four branches: Xbox Places, Xbox Pictures, Xbox Partnerships, and Xbox Products.
- Kayleen Walters, former head of Mojang Studios, will lead the division to enhance cross-media partnerships in film and TV.
- The new division is expected to oversee Minecraft-themed parks in the US and UK, with an investment of over £85 million.
Today, Microsoft unveiled its latest strategic move in the gaming industry by establishing a new branch of the Xbox business called XP. Detailed in a blog post on Xbox Wire, the XP division comprises four key branches: Xbox Places, Xbox Pictures, Xbox Partnerships, and Xbox Products.
Matthew Ball, chief strategy officer at Xbox, stated in a press release, “[XP] brings together capabilities that have existed across various teams at Xbox for years and aligns them behind a shared mission: helping our franchises reach more people, create deeper connections with players and new fans, and unlock new opportunities for these fandoms to grow around the world.” He emphasized that great games remain central to these franchises and the Xbox brand, highlighting that XP will collaborate with top creative talents from their studios and trusted partners to innovate experiences for fans.
Kayleen Walters will head the XP division, previously serving as studio head of Mojang Studios and as vice president of franchise development at Microsoft. Ball noted her significant contributions to iconic entertainment properties, mentioning her role in revitalizing major franchises during her 13 years at Lucasfilm and achieving remarkable sales growth for Minecraft during her tenure at Mojang, where sales increased from 350 million to over 425 million units.
With an eye on expanding its cross-media partnerships, Microsoft is particularly focused on opportunities in film and television. Notable recent successes in the film industry, such as the Super Mario Bros. movie grossing $1.36 billion and the Super Mario Galaxy film at $1 billion, have inspired this direction. Additionally, Sony’s newly released Resident Evil film has performed well, tracking at over $280 million. Xbox has also seen success on the screen; the Minecraft Movie grossed over $550 million in just two weeks and set the stage for a sequel.
XBOX’s television ventures include the popular Fallout series, which garnered 83 million viewers during its first 13 weeks of Season 2. However, the Halo TV series, produced by Paramount, faced challenges and was cancelled after two seasons. Ball’s announcement opens the door for future adaptations of other Xbox franchises, such as Perfect Dark and Fable, as well as potential storylines akin to Sony’s Gran Turismo series. Upcoming projects include a Gears of War film and a Sea of Thieves movie.
On the real-world front, Xbox Places will oversee the development of Minecraft-themed parks in the US and UK, representing more than £85 million of investment from Mojang and Xbox, with plans to open between 2026 and 2027. This initiative raises questions about potential additional real-life locations under the ‘Places’ banner.
As these initiatives develop, staffing will be a critical concern. The company has recently faced significant layoffs within Microsoft and Xbox, which raises questions about whether Xbox is seeking to recoup costs through diversified growth avenues amidst a contraction in its gaming and software sectors.
News Courtesy of Eurogamer
