Xbox CEO Asha Sharma is giving Microsoft’s gaming franchises a more coordinated push into Hollywood, merchandise, and themed attractions, with a former Lucasfilm executive leading the effort.
Announced October 8, the new Xbox division, called XP, will be headed by Kayleen Walters, who is transitioning from her leadership role at Minecraft developer Mojang.
By expanding beyond games, Sharma aims to bring Xbox’s familiar brands to audiences who may never pick up a controller while retaining the players who made those franchises successful.
The appointment brings together two significant parts of Walters’ career: helping market Star Wars worldwide and expanding Minecraft beyond its original game.
For Xbox, the question is whether that experience can help turn more of its gaming properties into enduring entertainment franchises.
Xbox XP Will Reach Beyond Movies and Television
According to Xbox’s announcement, XP consolidates capabilities previously spread across several teams, covering four investment areas.
Xbox Pictures will handle film, television, and other forms of linear storytelling. Merchandise falls under Xbox Products, while collaborations with brands, creators, and communities will be overseen by Xbox Partnerships.
A screenshot from A Minecraft Movie – YouTube, Warner Bros.
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Live events, broadcasts, immersive experiences, attractions, and destinations fall within Xbox Places. The division’s remit therefore extends well beyond producing the next video game movie.
Microsoft already has several adaptations underway, including a sequel to A Minecraft Movie, additional Fallout television episodes, and a Call of Duty film. XP gives that broader entertainment strategy a centralized leadership structure.
The name plays on “Experience Points,” although the business objective is straightforward: give audiences more ways to engage with Xbox properties.
Kayleen Walters Brings Lucasfilm and Minecraft Experience
Walters spent 13 years at Lucasfilm, rising to vice president of franchise marketing and integrated planning.
Her Digital Entertainment World biography describes responsibilities spanning global brand management, long-term Star Wars planning, and marketing campaigns across different business divisions.
Her résumé also includes theatrical marketing for Star Wars and Indiana Jones, producing documentaries for both franchises, and launching Star Wars: The Clone Wars.
Kayleen Walters at the world premiere for A Minecraft Movie – The Journalix, YouTube
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Walters helped develop the Star Wars Blu-ray collection and launched the charitable initiative Star Wars: Force for Change. Before Lucasfilm, she held positions at MGM and Universal Studios.
That background makes her appointment particularly relevant to XP’s combination of entertainment, products, partnerships, and attractions. Her career has involved coordinating how established franchises reach audiences across multiple platforms.
Walters joined Microsoft in 2018, initially leading franchise development for Minecraft. She subsequently became vice president of brand and entertainment for the franchise before taking over Mojang’s studio leadership in 2025.
In her announcement to employees, Sharma credited Walters with helping grow Minecraft consumer products into a multibillion-dollar business involving more than 250 licensees.
Walters also served as an executive producer of A Minecraft Movie and is a producer of its sequel.
She will report directly to Sharma. Meanwhile, former Reddit chief product officer Maria Angelidou-Smith will become CEO of Mojang and Minecraft on October 19, also reporting to Sharma.
A Broader Entertainment Push During Xbox’s Reset
XP arrives as Sharma attempts to rebuild a gaming business that has struggled financially.
As That Park Place previously reported, Microsoft’s fiscal-year closing quarter saw Xbox revenue decline 10%, with hardware revenue falling 13%.
Xbox Consoles – Microsoft
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The announcement follows Sharma’s August roadmap, which identified “Connection” as one of four priorities for rebuilding Xbox. That initiative called for extending its franchises into broader culture through film, television, consumer products, sponsorships, and live experiences. XP now gives those plans a dedicated division and leader.
Walters’ appointment gives Xbox an experienced executive whose background closely matches its expansion plans. However, movies, merchandise, and attractions will need compelling franchises to sustain them.
XP’s challenge will be translating enthusiasm for Xbox’s games into a larger entertainment business while preserving the appeal that earned those franchises their audiences.
What do you think of the new Xbox XP Program? Sound off and let us know!
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