Chuck E. Cheese CEO David McKillips said the company will launch an entertainment division.<br />The entertainment division will initially focus on merchandising and toys.<br />McKillips says that the ultimate goal will be to break into scripted entertainment.<br />In an effort to dig the chain out of financial trouble, McKillips laid out a plan for a long-term transformation.<br />McKillips told Business Insider he sees a future with Chuck E. Cheese animation and possibly one day a movie feature.<br />The division is still new, so McKillips declined to share any concrete plans.