Brief

Xbox creates XP division to turn games into movies, TV and merchandise

Xbox's new XP unit will oversee film, TV, product licensing and live‑event projects for its game catalog.

By Felo News Desk · Published

Xbox announced Thursday that it is forming a new division called XP to expand its video‑game properties into movies, television, merchandise and live experiences, according to CNET.

What happened

The company said XP will have four departments – Xbox Pictures, Xbox Products, Xbox Places and Xbox Partnerships – each tasked with creating film and TV adaptations, licensing deals, live‑event productions and brand collaborations. The move follows the commercial success of the "Minecraft" movie and the "Fallout" TV series, the only two of Xbox’s hundreds of titles that have been adapted so far.

What the reports add

CNET noted that Xbox also has adaptations in development for "Call of Duty" and "Gears of War", plus a Netflix‑animated series for "Diablo". It highlighted that the division’s name references the gaming term “experience points”.

What was said

Chief Strategy Officer Matthew Ball said, “Our ambition at Xbox is to be the number one entertainment company in the world.” Streaming‑media analyst Dan Rayburn told CNET, “They have to expand outside of the core gaming audience.”

How it came about

Xbox CEO Asha Sharma, who took the role in February 2025, has overseen a restructuring that cut 3,200 jobs and moved four studios out of Xbox. Revenue fell $1.7 billion (about 7 %) from July 2025 through June 2026, prompting the “reset” announced on July 6. The XP launch is presented as a growth strategy for the struggling gaming business.

Key facts

  • Xbox created a new division called XP to develop film, TV, merchandise and live events for its game catalog. (cnet.com)
  • XP will contain four departments: Xbox Pictures, Xbox Products, Xbox Places and Xbox Partnerships. (cnet.com)
  • Kayleen Walters, executive producer of the "Minecraft" movie, was named president of XP. (cnet.com)
  • Chief Strategy Officer Matthew Ball said Xbox aims to be the number one entertainment company in the world. (cnet.com)
  • Analyst Dan Rayburn said Xbox must expand beyond its core gaming audience. (cnet.com)

Sources

  • [1] cnet.com — originally reported as “New Xbox Division XP Will Adapt More Video Games for Movies and TV”

Earlier coverage

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