Pre–XP
Xbox's efforts to expand its franchises beyond video games predated the creation of XP. The company's first major initiative was Xbox Entertainment Studios (XES), established in 2012 to develop original television and other entertainment programming for Xbox. XES announced a slate of projects including a live-action Halo television series executive produced by Steven Spielberg, a Halo digital feature executive produced by Ridley Scott and David Zucker, the unscripted series Every Street United, and the drama series Humans, produced in partnership with Channel 4 and Kudos. XES also developed documentary and other original programming for the Xbox platform.
Although XES was closed in 2014, Xbox continued pursuing film and television adaptations of its video game properties through partnerships with external production companies and studios. The Halo television series was subsequently developed by Amblin Television and 343 Industries and premiered on Paramount+ in 2022. Xbox subsequently pursued adaptations of several other major franchises. In 2022, Netflix announced a feature film and animated series based on Gears of War, with The Coalition involved in the projects.
Following Microsoft's acquisition of ZeniMax Media, Xbox also became involved in adaptations of franchises owned by Bethesda Softworks, including the Fallout television series, which was developed by Amazon MGM Studios, Kilter Films, and Bethesda Game Studios and premiered on Prime Video in 2024. Warner Bros. Pictures produced A Minecraft Movie, with Mojang and Xbox involved in the project. Released in 2025, the film became a major commercial success and was subsequently cited by Xbox as an example of the potential for its franchises outside gaming.
A Call of Duty film was later announced with Paramount Pictures, while an animated series based on Diablo was announced as another planned adaptation. Xbox also expanded its entertainment partnerships beyond adaptations of its own franchises, including a collaboration with Hideo Kojima and Kojima Productions involving film and television projects connected to OD and Physint.
Establishment
In 2026, Xbox's new CEO Asha Sharma sought to further expand the company's franchises beyond the traditional video game market. Sharma outlined an ambition for Xbox to reach one billion people through its games, films, television programs, consumer products, and other forms of entertainment. She cited the success of Fallout and A Minecraft Movie as examples of how Xbox franchises could reach audiences beyond people who play the games. The strategy also included licensing, merchandise, live events, theme parks, and other location-based experiences.
Puck reported in August 2026 that Xbox was considering a license deal that would include the rights to adapt over a dozen Xbox brands, including as Halo, World of Warcraft, The Elder Scrolls, Diablo, and others, for cinema and television. According to reports, Xbox was looking for a long-term contract worth more than $300 million. Companies reportedly interested in the bundle included Netflix, Paramount, and Universal.
Xbox established XP in October 2026 as a division intended to bring together its existing entertainment and consumer-focused activities under a single organization. According to Xbox chief strategy officer Matthew Ball, the division was created to help Xbox's franchises reach wider audiences and develop new opportunities around its intellectual properties. Walters was appointed president of XP after previously serving as president of Mojang. Before joining Xbox, she spent 13 years at Lucasfilm, where she worked on the Star Wars franchise. At Mojang, she helped oversee the expansion of Minecraft into consumer products and served as an executive producer of A Minecraft Movie.
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