In among the litany of failures across Xbox and Microsoft in general, there are at least a few dozen undeniable epic business wins. One of those is undoubtedly Minecraft.
The blocky craft 'em up adventure already had huge momentum when Microsoft acquired it, but the firm has since turned Minecraft into a cultural powerhouse, with a merchandising and licensing empire that is often overlooked in general gaming discourse. Microsoft thinks there are more opportunities like this ... and that's why it is creating a new division under Xbox today.
"XP" is a new department under Microsoft's gaming team, led by new XP CEO Kayleen Walters, former president of Minecraft.
During Xbox's internal Town Hall meeting this week, Xbox CEO Asha Sharma described "four Cs" of focus for Xbox, with the session focusing mainly on Core and Content, i.e. console growth and uplifting Xbox's first and third-party content. Sharma described XP forging ahead with the Creator and Connection segments of the plan, aimed at developing other Xbox franchises to the same heights as Minecraft itself.
Microsoft put out a blog post today outlining the vision for XP, which will essentially operate as a licensing pipeline across all of Xbox's major franchises.
"Xbox Pictures" will focus on opportunities to bring Microsoft gaming franchises to the big and small screen, in the forms of movies and TV shows. Microsoft has already revealed a range of content in this area, including content for Gears of War, Wolfenstein, Diablo, among others. Big wins here include the Minecraft movie and Fallout TV show, both of which were huge successes in their own right, and vastly boosted interest in the games.
"Xbox Products" will extend what Walters has already done for Minecraft in the form of merchandising and other product lines. Microsoft says that these will be "authentic" to the fandoms. Toys 'R' Us recently announced plans to open dozens of new stores, focusing on the new adult toy-collector cohort. I suspect Microsoft may seek to join in here ... perhaps we could see Skylanders return?!
"Xbox Places" will be a new division focusing on fan events and theme park experiences. Microsoft specifically referred to BlizzCon in the press release here, and I recently heard whispers that Microsoft was interested in extending the BlizzCon model to other major Xbox franchises. Microsoft also has a theme park for Minecraft going live in the UK next year, set as a test bed for this type of thing. Perhaps the Overwatch map "Blizzard World" will become a reality some day ...
Finally, we have "Xbox Partnerships," which will continue the work Microsoft already does bringing its universes into other brands. The recent IKEA Xbox furniture line is an example of this, as well as the Blizzard McDonalds promotion in the UK, and the recent Fanta Xbox Game Pass integrations.
Kayleen Walters spent 13 years at Lucasfilm doing the same kind of work between Disney's theme parks and merchandising empires for Star Wars, and delivered the same for Minecraft during her tenure at Xbox. Now, Microsoft is hoping to extend that even further to franchises like Fallout, Call of Duty, Candy Crush, and more.
Reaching Xbox fans outside of Xbox
Speaking on the appointment, Kayleen Walters had this to say about XP and the potential that exists in Xbox's franchises.
"XP was created from a simple but powerful belief: the world's most beloved gaming franchises have an opportunity to reach people far beyond the boundaries of the game itself. Fans don't just play our franchises. They watch them, wear them, attend them, celebrate them, and connect with them in countless ways. XP brings together the teams responsible for helping XBOX franchises show up in the world in bigger, more meaningful ways."
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Microsoft has also appointed former Reddit and Meta executive to run Minecraft in Walters' stead, with a goal of growing Minecraft's chops as a developer platform, taking on Roblox and the like.
This era of Xbox revolves around synchronizing and utilizing Microsoft's acquisitions of the last few years, identifying the clear opportunities that the Minecraft movie and Fallout TV show has presented. Other big media properties of recent years, spanning Cyberpunk, to Castlevania, to Resident Evil, have all seen significant uplift as a result of successful delivery of these shows and movies.
Of course, those movies and TV shows have to actually be good. And as the Halo TV show has taught us ... a flop can actually do more harm than good to a gaming brand and its potential. There's no guarantee Microsoft and its partners can easily emulate the success of the Fallout TV show and Minecraft movie with other properties. I would like to see them take another stab at a Warcraft movie, though.
In any case, Microsoft has explored this segment before with Xbox Entertainment Studios, which fell apart quite rapidly. Microsoft knew this segment was going to be big, as far back as 2012. Although it seems Microsoft now has the good sense to work with external experts (like Netflix and Amazon Prime) rather than try to develop some of these products in-house.
It remains to be seen if the results of this venture will actually deliver. There's definitely a clear and obvious opportunity here, and Xbox's primary competitors, Nintendo and PlayStation, are leaning heavily in this direction already.
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