Xbox Launches XP Division Led by 'Minecraft' Studio Chief Kayleen Walters

Xbox has created a new entertainment division, XP, and named Kayleen Walters — president of Minecraft studio Mojang and executive producer of "A Minecraft Movie" — as its president. Xbox CEO Asha Sharma announced the appointments in a memo published Thursday on the Xbox Wire.

XP, a play on "experience points" in gamer terminology, will consolidate Xbox's film and television, consumer products, strategic partnerships and live experiences businesses under one roof. Walters will lead a team building entertainment based on Xbox franchises including "Minecraft," "Call of Duty," "Fallout," "Warcraft," "Gears of War," "Candy Crush," "Diablo," "Forza," "The Elder Scrolls" and "Halo."

What will XP actually do?

Chief strategy officer Matthew Ball, in his own memo to staff Thursday, said the move "brings together capabilities that have existed across various teams at Xbox for years and aligns them behind a shared mission: helping our franchises reach more people, create deeper connections with players and new fans, and unlock new opportunities for these fandoms to grow around the world."

Ball outlined four investment areas:

• Xbox Pictures — film, television and other linear storytelling
• Xbox Products — merchandise and products "authentic to the fandom"
• Xbox Places — live events, immersive experiences, attractions, broadcasts and destinations
• Xbox Partnerships — creator, brand and sponsorship collaborations

Walters framed the rationale in her memo: "XP was created from a simple but powerful belief: the world's most beloved gaming franchises have an opportunity to reach people far beyond the boundaries of the game itself. Fans don't just play our franchises. They watch them, wear them, attend them, celebrate them, and connect with them in countless ways."

Why Walters?

Her record is measurable. During her tenure at Mojang, Minecraft grew from 350 million units sold to more than 425 million, and Warner Bros.' "A Minecraft Movie" posted the biggest opening weekend ever for a video game adaptation, reaching No. 1 at the domestic box office. Sharma noted Walters grew Mojang's consumer products business into a multibillion-dollar operation with more than 250 licensees, and that she is a producer on the film's sequel. Her team also secured a deal for the first of several planned Minecraft theme parks.

Before Mojang, Walters spent 13 years at Lucasfilm guiding Star Wars across films, products and partnerships.

Who takes over at Mojang?

Sharma named Maria Angelidou-Smith as Walters' successor as CEO of Mojang. A Meta alum, Angelidou-Smith spent nearly a decade there leading Facebook Groups — used by more than 1.8 billion people monthly — along with Events, Creators, Search, Profile and Monetization. She later led product and technology at Personio and served most recently as chief product officer at Reddit. She starts Monday, October 19, at the Bear Creek office.

"Minecraft is one of the largest communities in entertainment," Sharma said. "The community doesn't just consume the product. It helps shape what the product becomes."

How far beyond games does Xbox intend to go?

The division arrives amid a busy adaptation slate: Amazon's "Fallout" TV series, an upcoming "Diablo" animated series, a "Call of Duty" movie in the works at Paramount, and film and TV rights to Hideo Kojima's next game, "Physint." Xbox also recently hosted an expanded BlizzCon — the convention's return after three years — and launched a WWE takeover themed around "Gears of War: E-Day."

Sharma says Xbox aims to expand beyond the capabilities of a traditional Hollywood studio into off-screen entertainment, with Walters building those experiences — starting with the Minecraft theme parks already in motion.