Xbox Revolutionizes its Business Model with New XP Division
In a move that signals Xbox’s commitment to expanding its brand beyond gaming, CEO Asha Sharma unveiled a new division dedicated to game-adjacent ventures. Dubbed XP, this innovative approach brings together four key pillars under one umbrella, each contributing to the rich and immersive experiences fans crave. The result is a comprehensive ecosystem that seamlessly blends entertainment, products, events, and partnerships, solidifying Xbox’s position as a leader in the industry.
At the helm of this new division is Kayleen Walters, a seasoned executive with a decade-long tenure at Microsoft. As president of Mojang, she has worked tirelessly to grow Minecraft into one of the world’s most beloved gaming franchises. Her background in film – marked by successful stints at Lucasfilm, MGM, and Universal – perfectly positions her to lead the XP division, which encompasses Xbox Pictures (film and TV investment and management), Xbox Products (authentic merchandise creation), Xbox Places (live events and experiences), and Xbox Partnerships (creator-focused initiatives).
The XP name itself is a nod to the gaming community, referencing “Experience Points” or simply “Experience.” This wordplay underscores the division’s mission: to deliver live events, broadcasts, and experiences that transport fans into new worlds. With projects like Minecraft Squared, the upcoming sequel to A Minecraft Movie, and collaborations with Amazon on Fallout and Diablo animated series, XP is poised to revolutionize how Xbox engages with its audience.
The announcement arrives in the wake of significant changes within the Xbox division, including recent layoffs and studio divestments. While these moves may have raised eyebrows, they were part of a broader strategy aimed at refocusing priorities around major franchises like Minecraft. Today’s unveiling seems to be a natural progression of that plan, emphasizing transmedia plans for properties like Minecraft.
As Xbox continues to push the boundaries of what it means to be an entertainment company, XP represents a bold new chapter in its evolution. By integrating film, TV, products, events, and partnerships under one roof, Xbox is creating a rich tapestry of experiences that will captivate audiences worldwide. With Kayleen Walters at the helm, we can expect innovative and immersive ventures that blur the lines between gaming and entertainment.
This move has far-reaching implications for the VR/AR industry as well. As more companies explore new business models and revenue streams, Xbox’s commitment to game-adjacent ventures serves as a beacon of creativity and innovation. By embracing this expanded scope, XP is poised to redefine what it means to be a gaming company in the 21st century. With its emphasis on live events, broadcasts, and experiences, we can expect to see exciting new opportunities emerge for VR/AR enthusiasts. One thing is certain – with Xbox leading the charge, the future of gaming has never looked brighter.
Source: Game Developer XR — 2026-10-08