Microsoft game business forms unit to expand fan base for its videogames
By Kelly Cloonan
Microsoft's Xbox is forming a new division focused on extending its franchises into areas like film and television, as the videogame unit continues its turnaround efforts.
The new division, dubbed XP, aims to help Xbox's roster of videogames grow their fan bases, and connect with them more deeply, Microsoft said Thursday.
The division will be led by Kayleen Walters, who was previously president of Xbox's Mojang unit. Mojang houses Minecraft, one of Xbox's most important franchises.
Maria Angelidou-Smith will take over as chief executive of Mojang to succeed Walters. Angelidou-Smith was previously chief product officer at Reddit and also spent nearly a decade at Meta, where she led Facebook Groups.
"Our franchises can mean more to people than the time they spend playing them," Xbox's Chief Executive Asha Sharma said in a message to staff.
Among the key focus areas for the new division is pushing further into film and television, with the goal of bringing the world and characters seen in Xbox's games to new audiences. Xbox's "Fallout" TV show has been a hit on Amazon Prime Video, and was recently renewed for a third season.
The new division also will span consumer products, partnerships with creators and brands, as well as live experiences like events, attractions and broadcasts, Xbox said.
Sharma, who was promoted to CEO of Xbox in February, has been looking to transform the business quickly, The Wall Street Journal has previously reported. The executive has told employees she expects profit margins in the double digits this fiscal year and to ultimately reach one billion people daily between the company's games, films and other media, the Journal said.
Xbox's revenue has been declining, and its GamePass subscription service has fallen short of projections.
In July, Sharma shared plans to cut about 20% of Xbox's staff, and trim the number of games it makes. In a post to X at the time, she said the business was not healthy and that the division must reset.