XBOX Launches XP: New Division Dedicated To Film And TV Adaptations

Introduction

Prince of Persia. Mortal Kombat. Resident Evil. Lara Croft. Sonic the Hedgehog. Street Fighter. Do you know what these movies have in common? Think, think, think.

They are all based on popular and successful video games.

For years, Hollywood has turned to video games to develop box office blockbusters based on beloved characters gamers have enjoyed controlling. Whether Hollywood is running out of creative ideas or its bigwigs are marketing geniuses is anybody's guess.

To be fair, gaming companies have also developed a wide range of games around movies too. Pretty much any big movie gets gamified, including Spider-Man and the rest of the MCU gang, The Lion King, Toy Story, Batman, Harry Potter, and more.

Now, Microsoft's gaming division XBOX has made a move to put its hands in both cookie jars, as XBOX launches its XP division (hmmmm, where have we heard this before?).

XP is Microsoft's newest move to expand into movies and TV, as well as merchandise and live experiences (the third and fourth cookie jars?), which might soon bring users entertainment across XBOX video games, movies, and TV series.

So, what exactly does this move entail, and how will it help Microsoft?

Press Start to play.
 

XBOX Introduces XP To Take Its Gaming Franchises Beyond Consoles

On October 8, 2026, XBOX officially introduced XP, a new division designed to bring its gaming franchises to audiences through films, television, merchandise, partnerships, and live experiences.

The name XP stands for Experience Points, which gamers earn to level up characters and unlock new abilities. Quite fitting, considering XBOX is unlocking another level of entertainment!

FYI, Microsoft’s operating system (OS) Windows XP stood for eXPerience.

According to XBOX Chief Strategy Officer Matthew Ball, the division brings together capabilities that previously existed across different XBOX teams, creating a more coordinated approach to developing entertainment franchises.

Rather than replacing its gaming business, XP will build on the characters, stories, and communities that made its games popular.

 

What Are The Four Divisions Under XBOX XP?

The new Microsoft XBOX entertainment division, XP, operates across four investment areas:
 

• XBOX PICTURES: Develops opportunities for film, television, and other forms of screen-based storytelling.

• XBOX PRODUCTS: Expands licensed merchandise and consumer products inspired by gaming franchises.

• XBOX PLACES: Creates live events, broadcasts, immersive attractions, and location-based experiences.

• XBOX PARTNERSHIPS: Works with brands, creators, and communities on sponsorships and collaborations.

In other words, XBOX wants fans to do more than play its games. It wants them to watch, wear, visit, and experience their favorite franchises.

That brings us to the biggest cinematic opportunity.
 

How Will XBOX XP Expand Video Game Movies And TV Series?

The XBOX XP film and TV adaptations strategy revolves around turning gaming properties into entertainment that reaches existing players and audiences who may have never touched a controller.

Through XBOX PICTURES, the company plans to expand its fictional worlds and characters through television and film, creating more opportunities for transmedia storytelling.

XBOX already has successful examples to build upon. A Minecraft Movie became a major theatrical success, while the Fallout television series demonstrated the appeal of familiar game worlds in another format.

Microsoft's announcement also highlights XP's intention to collaborate with creative teams inside its studios and trusted external partners.

That helps answer a common question: Will XBOX XP produce its own movies or partner with Hollywood studios?

For now, the announcement emphasizes partnerships rather than establishing XP as a standalone Hollywood production studio. XBOX has not announced a complete production slate, release schedule, or specific new adaptation under XP.

Of course, films and merchandise need people who understand both franchises and their fans. That is where another announcement enters the frame.

 

What Did XBOX CEO Asha Sharma Say In Her Letter?

Alongside XP’s announcement, XBOX CEO Asha Sharma shared a letter detailing two appointments supporting the company’s Creator and Connection priorities.

Kayleen Walters will become President of XP, moving from her leadership role at Mojang, the studio behind Minecraft.

Walters previously spent 13 years at Lucasfilm working with the Star Wars franchise. At Mojang, she helped expand Minecraft’s merchandise and licensing business and served as an executive producer of A Minecraft Movie.

Her experience makes her a natural choice to oversee XBOX’s entertainment expansion.

Meanwhile, Maria Angelidou-Smith will become CEO of Mojang and Minecraft, starting October 19, 2026.

Angelidou-Smith previously held leadership roles at Meta, Personio, and Reddit, where she worked on large-scale communities, digital products, and technology.

Both executives will report directly to Sharma.

The appointments suggest XBOX is pursuing two connected goals: expanding its franchises into entertainment beyond games while keeping their original player communities at the center.
   

The Final Level

XBOX is turning its biggest gaming franchises into potential entertainment universes, with XP bringing movies, merchandise, partnerships, and live experiences under one roof. Whether this new strategy produces the next blockbuster or unlocks new fan experiences will depend on what XBOX actually delivers.

For now, Microsoft has announced the mission, assembled its party, and selected its next quest. The controller is still connected.

Game Over.