Xbox has announced a new XP business unit, dedicated to transmedia brand extensions, including the Fallout TV series and the Minecraft World theme park.
The new enterprise will be led by Kayleen Walters, the current president of Minecraft developer Mojang Studios, who previously spent eight years overseeing franchise development at Microsoft. Before joining Microsoft, she spent 13 years at Lucasfilm, rising to become vice president of franchise marketing and integrated planning.
Walters was appointed as head of Mojang Studios in February, replacing outgoing head Åsa Bredin, who stepped down to “focus on personal goals outside of work.” Walters will be replaced as president of Mojang by Maria Angelidou-Smith, who joins the Xbox division from Reddit, where she was chief product officer. Previously, she spent nearly a decade at Facebook.
The XP division will focus on four areas: Xbox Pictures for film and television adaptations, Xbox Products for licensing and merchandise, Xbox Partnerships for sponsors and brand partners, and Xbox Places for broadcast and in-person events, theme parks, and other location-based experiences.
In an email sent to Xbox employees this morning, Xbox head Asha Sharma said that the firm’s franchises “mean more to people than the time they spend playing them, and Kayleen knows how to build those experiences with the industry without losing what made people care about the franchise in the first place.”
On Angelidou-Smith’s appointment, Sharma said: “We wanted someone who has built products for communities at enormous scale, who is deeply technical, and who understands how creators, product, technology, and monetization come together. Maria brings a rare combination of those experiences.”
At the recent Minecraft Live event in September, it was announced that the Minecraft World destination will open at UK theme park Chessington World of Adventures in 2027. Microsoft entered a deal with Chessington owner Merlin Entertainments in 2024, with Merlin investing more than $110 million in two Minecraft-themed attractions.
“We are everywhere digitally, Merlin is everywhere physically,” said Walters at the time of the deal. “It’s about how do we expand Minecraft beyond the game. Mojang and Microsoft are experts on Minecraft and the brand, Merlin are the experts on location-based experiences; it’s a shared vision.”
Walters was executive producer of A Minecraft Movie in 2025, which generated $550 million after ten days in theatres. A sequel has been greenlit for July 23, 2027.
Microsoft’s new XP business unit will also oversee the Fallout TV series, which has been a hit for Amazon Prime Video, and has driven increased sales of the franchise’s back catalogue, along with a player uptick in mobile title Fallout Shelter.
The Halo TV series was less successful, lasting only two seasons on Paramount+ before being cancelled in 2024. A Gears of War movie that will “tell the origin story of Delta Squad” is currently in development at Netflix.
The announcement of the new XP division is the latest in a long list of changes in Microsoft’s gaming portfolio. Sharma announced a “reset” earlier this year, which has led to the loss of around 3,200 jobs and the divestment of five studios. But GamesIndustry.biz contributing editor Rob Fahey has questioned where the reset is going: “Nobody has yet deigned to outline a clear vision for what Xbox will actually look like after this reset,” he said.