Microsoft’s Xbox is expanding its ambitions beyond gaming with the creation of XP, a new division that will develop its franchises across film, television, consumer products and live entertainment.
The new operation, headed by former Mojang president Kayleen Walters, will bring together activities previously spread across Xbox’s various businesses, with the aim of developing its gaming properties into broader entertainment franchises.
The move represents a further convergence between the gaming and television industries, which have increasingly sought to attract audiences across both forms of entertainment.
Television platform operators have long viewed gaming as an opportunity to increase engagement with their services. Netflix has developed its own catalogue of games, while Sky has incorporated gaming into its entertainment offering. We’ve also seen games
Conversely, gaming consoles have provided access to television and streaming services for many years, allowing users to watch Netflix and other video platforms alongside playing games.
Drama The Last of Us began life as a gaming franchise before successfully moving into television. Other examples include Fallout (Amazon Prime Video), Halo (Paramount+) and Arcane (Netflix), which is based on the League of Legends universe. The Super Mario Bros. Movie and A Minecraft Movie started as gaming franchises before making the transition to cinema.
However, Xbox’s latest strategy goes further, seeking to transform gaming franchises into entertainment properties that can reach audiences through television, cinema and other experiences.
The new division will comprise four business areas. Xbox Pictures will focus on adapting gaming worlds and characters for film, television and other forms of storytelling.
Xbox Products will develop merchandise and consumer products, while Xbox Places will oversee live events, immersive attractions and destinations. Xbox Partnerships will work with brands, creators and other organisations on commercial opportunities.
Matthew Ball, Chief Strategy Officer at Xbox, said the company’s ambition was to become the world’s leading entertainment company.
“Our ambition at XBOX is to be the number one entertainment company in the world. This means growing our games into enduring franchises that entertain, inspire and connect people across every generation and across the globe.”
Walters previously spent 13 years at Lucasfilm before joining Mojang, where she oversaw the continued expansion of Minecraft.
During her tenure, Minecraft sales increased from 350 million to more than 425 million copies, while its merchandising business became one of the world’s 20 largest.
The success of A Minecraft Movie, which achieved the biggest opening weekend for a video game adaptation, has demonstrated the potential for gaming properties to reach audiences beyond their original platforms.
Xbox says the new division will work with creative talent across its studios and external partners to develop further opportunities.
The creation of Xbox Pictures also reflects the growing importance of established intellectual property to television and streaming services, where recognisable franchises can help attract audiences in an increasingly competitive market.
For Microsoft, the strategy offers an opportunity to extend the commercial life of its gaming properties while reaching consumers who may never have played the original games.
