Microsoft said Thursday it is formalizing its push into entertainment with XP, a division designed to widen Xbox's footprint across film and television, consumer products, live experiences and destination attractions. XP will coordinate those efforts across the company, and Microsoft noted it will not operate as a production studio itself.
Kayleen Waters takes the helm as XP's president. She previously ran Microsoft's Minecraft unit, Mojang, and spent 13 years at Lucasfilm, including serving as vice president of franchise marketing. Waters was also an executive producer on the Minecraft film, which broke box-office records with a $157 million opening weekend, and a follow-up is already in production. In a message to her team, she wrote, "Fans don't just play our franchises. They watch them, wear them, attend them, celebrate them, and connect with them in countless ways."
At Mojang, Microsoft named a new chief: this month, Maria Angelidou-Smith will become the unit's CEO after holding roles at Reddit Inc. and Meta Platforms Inc.
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Microsoft's entertainment ambitions remain intact even after mass layoffs and studio spin outs aimed at tightening the focus of its gaming business. Fallout on Prime Video has been a breakout: Amazon reported 100 million viewers sampled the show, and the series was renewed for a third season. As that first season aired, hours played for Fallout titles on Game Pass jumped five times. The Minecraft movie also appears to have fed the game's momentum, with weekly active users rising 75% in the year after the film's release.
Not every crossover lands, though. Riot Games' Arcane on Netflix reportedly cost $250 million and did little to bring new players into the game.
The pipeline is jammed: Netflix is prepping an animated series inspired by Diablo; a Call of Duty feature is in the works; and PHYSINT, a collaboration with Hideo Kojima, includes rights for both film and television. Plus, a Minecraft theme park is slated to open in London in 2027. For everyday players, this blend of shows, parks and products can make beloved franchises stickier, which often translates into more time - and money - spent in those worlds. If you're seeing your favorite game on TV or at a theme park, expect more in-game events, tie ins and subscription nudges to match.
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