Microsoft launches Xbox XP division for movies, merch, and theme parks
A new unit led by former Minecraft president Kayleen Walters will expand Xbox franchises into film, merchandise, and physical experiences.

Key points
- Microsoft established a new division called XP under its gaming team to manage licensing and franchise growth.
- Kayleen Walters, former president of Minecraft, has been appointed as the CEO of this new unit.
- The division focuses on three pillars: Xbox Pictures, Xbox Products, and Xbox Places.
Microsoft announced the creation of a new division named XP within its Xbox gaming team today. The unit is designed to expand the company’s major game franchises into movies, television shows, merchandise, and theme park experiences. Kayleen Walters, who previously served as president of Minecraft, has been named the CEO of this new department.
According to a blog post published by Microsoft, XP will operate as a centralized licensing pipeline for all major Xbox franchises. The company aims to replicate the commercial success seen with Minecraft across other properties. Xbox CEO Asha Sharma described the initiative during an internal Town Hall meeting this week. She outlined four strategic pillars for Xbox, with XP focusing on the Creator and Connection segments.
Context and Background
The new structure divides into three specific operational areas. Xbox Pictures will manage opportunities to bring Microsoft gaming franchises to big and small screens in the form of movies and TV shows. Microsoft already has content in development for Gears of War, Wolfenstein, and Diablo. The company cited the Minecraft movie and the Fallout TV show as previous successes that significantly boosted interest in their respective games.
Xbox Products will handle merchandising and other product lines, extending the model Walters previously applied to Minecraft. Microsoft stated these items will be authentic to the fandoms. This aligns with broader retail trends, such as Toys 'R' Us opening new stores focused on adult collectors. Microsoft may seek to join these retail initiatives with new product lines for its various game brands.
Who Is Affected
Xbox Places represents a new division focused on fan events and theme park experiences. Microsoft specifically referenced BlizzCon in its press release as a model for this type of engagement. The author of the source report noted hearing whispers that Microsoft was interested in extending this event model to other major Xbox franchises. Additionally, Microsoft has a Minecraft theme park scheduled to open in the UK next year, which will serve as a test bed for this strategy.
What should you do?
Security and technology professionals should monitor how this expansion affects the digital supply chain of Xbox franchises. As Microsoft integrates more media and physical products, the attack surface for brand impersonation and phishing may increase. Teams should verify official channels for any new announcements related to these franchises.
What to do and how to stay safe: Microsoft
- Monitor official Xbox and Microsoft channels for verified announcements regarding new franchise content to avoid phishing attempts using fake movie or merch drops.
- Review brand protection policies to ensure that third-party partners involved in new licensing deals adhere to strict security and authentication standards.
- Watch for social media campaigns related to new Xbox Pictures or Xbox Places events, as attackers often exploit hype around major launches for credential harvesting.
- Ensure that customer support teams are briefed on the new XP division structure to accurately identify and report suspicious communications claiming to be from Xbox licensing partners.
General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
Who is leading the new Xbox XP division?
Kayleen Walters, the former president of Minecraft, has been appointed as the CEO of the new XP division.
What are the three main focuses of the XP division?
The division focuses on Xbox Pictures for film and TV, Xbox Products for merchandise, and Xbox Places for events and theme parks.
Which existing franchises are mentioned for new media content?
Microsoft has revealed content in development for Gears of War, Wolfenstein, and Diablo, alongside previous successes with Minecraft and Fallout.


