Xbox XP announced: Microsoft splits new division into four parts under Kayleen Walters
Microsoft has announced Xbox XP, a new Xbox division led by Kayleen Walters, split into four parts: Xbox Places, Pictures, Partnerships and Products.
- Kayleen Walters will lead XP; sources say she previously worked at Mojang Studios and Microsoft in franchise development.
- XP is meant to help Xbox franchises grow beyond games, while games remain at the center.
What happened
Microsoft announced a new Xbox structure on October 8, 2026, under the name XP. In the explanation, the division is split into four branches: Xbox Places, Xbox Pictures, Xbox Partnerships and Xbox Products. The focus is on expanding Xbox franchises through film, TV, live experiences, collaborations and products. In the official description, XP is presented as a new Xbox division focused on how people experience franchises outside the games themselves, while games remain the core of those brands.
According to multiple sources, the name XP refers to “experience points,” a nod to gaming jargon. In the provided context, Microsoft also makes clear that it is not presenting the division as a separate brand, but as part of a broader Xbox strategy around entertainment and brand expansion. The four parts are meant to serve as separate focus areas: Xbox Pictures for film and TV, Xbox Places for live experiences and events, Xbox Partnerships for collaborations with creators, brands and communities, and Xbox Products for products based on Xbox IP.
Kayleen Walters will lead XP. The provided sources link her to previous roles as studio head of Mojang Studios and vice president of franchise development at Microsoft in Redmond. Other descriptions also refer to her as a former president of Mojang and as an executive producer on A Minecraft Movie, but the key point of the announcement is that Microsoft is now presenting her as the leader of XP. In official Xbox communication, Microsoft also says Walters is moving from Mojang into the new role as president of XP.
Microsoft says XP should bring existing Xbox teams together around a shared mission: to reach more people with franchises and unlock new growth opportunities. The company stresses that major games will remain central, while the new division should provide additional ways to experience those worlds outside games. In the provided sources, XP is therefore described mainly as a structure for coordination, expansion and partnerships, not as a completely separate label replacing the games division.
Timeline
2026-10-08: Microsoft announces Xbox XP as a new Xbox division with four parts: Xbox Places, Xbox Pictures, Xbox Partnerships and Xbox Products.
2026-10-08: In official Xbox communication, XP is described as a division that should help expand franchises beyond games, with film, TV, products, partnerships and live experiences as focus areas.
2026-10-08: Microsoft says Kayleen Walters will lead XP and is moving from Mojang into the role of president of XP.
2026-10-08: Microsoft says XP should bring Xbox teams together around a shared mission, while games remain central to the franchise strategy.
2026-10-08: The name XP is explained in multiple external summaries as a reference to “experience points,” fitting Xbox’s gaming context.
Background
The announcement fits into a broader strategy in which Xbox is positioning its franchises more clearly as entertainment brands. According to the sources, Xbox Pictures will focus on film and TV projects, Xbox Places on live events and experiences, Xbox Partnerships on collaborations with creators, brands and communities, and Xbox Products on products tied to Xbox IP. The official Xbox text also says XP is intended to broaden how people experience franchises, without losing sight of the games themselves.
The available information still leaves open whether XP is mainly a coordination and partnership division or also a production house. The sources mention film, TV and live experiences, but do not provide a fully detailed description of the internal workflow. The exact responsibilities, reporting lines and the precise scope of Walters’ role are also not fully spelled out. What is clear is that she will become the new president of XP, and that her move comes alongside a broader restructuring within Xbox.
The context around Walters suggests Microsoft is leaning on someone with experience in franchise development and entertainment. The sources connect her career to Mojang Studios and to franchise development within Microsoft, while other summaries also link her to Lucasfilm experience. That background fits the direction of XP, which the announcement says is about extending Xbox worlds into other media and formats.
The four parts of XP also point to Microsoft’s priorities. Xbox Pictures is meant to support the move into film and television, Xbox Places to enable physical and live experiences, Xbox Partnerships to structure external collaborations, and Xbox Products to expand products around Xbox IP brands and characters. The sources do not mention any concrete projects, franchises or partners already under XP, so the announcement remains primarily an organizational and strategic move.
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