Xbox Launches Licensing Arm XP to Monetize Franchises Like Minecraft and Fallout

Xbox has announced the launch of a new licensing division called XP, designed to generate additional revenue from its flagship franchises through expanded licensing deals. The move comes as the company continues to undergo significant restructuring, including mass layoffs affecting up to 3200 employees.

XP will focus on four key areas: Xbox Pictures for film and TV adaptations, Xbox Products for merchandise, Xbox Places for live events and themed attractions, and Xbox Partnerships for sponsorships and brand collaborations. The division aims to build on the success of properties like the recent Minecraft movie and the Fallout TV series.

"Great games remain at the center of these franchises and at the heart of Xbox," said Xbox chief strategy officer Matthew Ball in an announcement post. "XP will partner with the best creative minds across our studios, along with trusted partners, to build on that foundation and create more ways for people to experience the worlds they love."

In related news, Mojang Studios has appointed Maria Angelidou-Smith as its new CEO. She previously worked at Meta for nearly a decade, focusing on Facebook's groups, events, creators, search, profile, and monetisation features. Before that, she held product leadership roles at Personio and Reddit. Her appointment signals a continued emphasis on community-driven product development and monetisation strategies.

Xbox boss Asha Sharma emphasized that the company remains committed to game development while exploring new revenue streams. She noted that the licensing push is intended to complement, not replace, the core gaming business. However, critics have questioned whether earlier investment in licensing could have preserved some of the studios and projects affected by recent cuts.

The restructuring has sparked concerns among fans and industry observers about the future of several beloved franchises. While Microsoft insists it is not planning to sell Xbox, the company is actively seeking partnerships and new operating models to ensure long-term success.