Xbox created the XP division to expand its video game franchises into film, television, consumer merchandise and live attractions. The announcement came from executive headquarters in Redmond, Washington, on Thursday, October 8, 2026, confirming former Mojang Studios leader Kayleen Walters as president of the newly organized branch.
Walters and incoming Mojang Studios chief executive officer Maria Angelidou-Smith will report directly to Xbox chief executive officer Asha Sharma. Sharma stated that “XP is a play on ‘Experience Points’ and formalizes four investment areas for us: XBOX PICTURES for film and television adaptations; XBOX PRODUCTS for licensing and merchandise; XBOX PARTNERSHIPS for sponsors and brand partners; and XBOX PLACES for our marquee broadcast and in-person events, theme parks, and other location-based experiences.”
Date, leadership and core details of the Xbox XP rollout
- Official announcement date: Thursday, October 8, 2026
- Headquarters location: Redmond, Washington, United States
- Executive appointments: Kayleen Walters as President of XP and Maria Angelidou-Smith as CEO of Mojang Studios
- Reporting line: Both divisional leaders report directly to Xbox Chief Executive Officer Asha Sharma
- Divisional branches: Xbox Pictures, Xbox Products, Xbox Places and Xbox Partnerships
Four investment pillars define the Xbox XP entertainment strategy
The establishment of XP unifies internal capabilities that previously operated across separate teams inside the gaming division. By organizing resources into four formal segments, the unit centralizes negotiations with Hollywood studios, manufacturers, theme park developers and corporate sponsors. Xbox strategy leadership indicated that the core video games will remain the foundation of every brand, while the XP teams build external entertainment formats around those interactive worlds.
Read also: Xbox allows digitalization of physical games and surpasses PlayStation in the transition to digital
Matthew Ball, chief strategy officer of Xbox and author of the presentation memorandum, highlighted the corporate objective to grow gaming properties into enduring entertainment franchises. “Kayleen understands that the strongest franchises grow by remaining true to what and who made them special while creating new ways for fans, creators, partners, and communities to participate. I cannot imagine a better leader for this division and we are just getting started imagining what it will build,” Ball stated.
Maria Angelidou-Smith takes charge of Mojang Studios and Minecraft
The appointment of Walters to head XP opened the leadership role at Mojang Studios, the development studio responsible for Minecraft. Maria Angelidou-Smith, a former executive at Meta and former product director at Reddit, was selected to succeed Walters as chief executive officer of Mojang Studios and the Minecraft franchise. During her tenure at Meta, Angelidou-Smith managed Facebook Groups, an online community ecosystem that served 1.8 billion monthly active users.
Keep reading: Microsoft plans to release full completion seal for Xbox games by the year 2026
Sharma outlined the qualifications that led to the executive hire, noting the technical demands of supporting one of the largest player bases in video game history. “We wanted someone who has built products for communities at enormous scale, who is deeply technical, and who understands how creators, product, technology, and monetization come together,” Sharma explained. Angelidou-Smith officially takes office in her new post on Monday, October 19, 2026.
Kayleen Walters expands Minecraft sales past 425 million units
Walters arrived at Microsoft after spending 13 years at Lucasfilm, where she managed brand extensions and franchise relaunches. During her tenure directing Mojang Studios, Minecraft expanded from an existing record of 350 million units sold to more than 425 million copies worldwide. In parallel with software sales, the consumer merchandise operation grew into a top 20 global licensing business supported by more than 250 commercial partners and secured initial theme park placements.
Under Walters, the theatrical release of A Minecraft Movie recorded the highest opening weekend box office in history for a video game adaptation, ultimately finishing as the top-grossing film at the United States domestic box office in 2025. Walters remains attached as a producer for the confirmed cinematic sequel, ensuring continuous executive oversight of the theatrical film line while assuming broad management across the wider Xbox portfolio.
Key commercial metrics behind the Xbox entertainment expansion
- Minecraft lifetime software sales: Expanded from 350 million to over 425 million units under Walters
- Consumer product global reach: Ranked inside the top 20 licensing programs worldwide with over 250 partner companies
- Lucasfilm management background: 13 years directing franchise relaunches and intellectual property brand growth
- Meta operational scale: 1.8 billion monthly users managed across Facebook Groups by Angelidou-Smith
- Theatrical milestone: Number 1 domestic box office ranking in 2025 achieved by A Minecraft Movie
Fallout adaptation and cinema success drive the Xbox roadmap
The decision to build out the XP division reflects an accelerating transmedia push that gained commercial momentum following the positive critical reception and audience metrics generated by the television adaptation of Fallout on Prime Video. Corporate leadership determined that players engage with fictional universes well beyond the hours spent holding controllers, making linear narrative formats an essential vehicle for audience acquisition.
“Our franchises can mean more to people than the time they spend playing them, and Kayleen knows how to build those experiences with the industry without losing what made people care about the franchise in the first place,” Sharma noted regarding the long-term vision of the division.
Pending budget figures and future Xbox productions
Xbox has not disclosed the total financial budget allocated specifically to fund the operational activities of the XP division. The company also has not publicly revealed which unannounced film, television or location-based entertainment projects are currently in development under the newly created banner beyond existing commitments. The transition takes its next operational step on Monday, October 19, 2026, when Angelidou-Smith officially assumes her duties as chief executive officer of Mojang Studios.
