dailynewsnblog
Out of all of Xbox’s studios (of which there are admittedly fewer now following mass layoffs and studio divestitures), Blizzard is reportedly the “top performing.”
That’s according to a new report from Windows Central based on emails sent by Blizzard president Johanna Faries to staff last week. In the emails, Faries celebrated the studio’s performance ahead of BlizzCon in September, an event she hopes will “serve as a powerful springboard into a new era of momentum and excitement.”
Faries went on to state Blizzard ended the 2026 fiscal year as the “top-performing studio in Xbox’s studios division, and this past year has marked our third highest fiscal for top line revenue in Blizzard’s history.” Faries doesn’t elaborate on what exactly “top performing” means, but Blizzard saw its first consecutive years of growth since fiscal year 2017. Faries attributed the growth to two games specifically.
“Diablo 4: Lord of Hatred and Overwatch drove exceptional performance in particular, with Overwatch delivering its strongest quarter since 2022,” Faries said.
Both Diablo 4 and Overwatch have certainly had big years, as did World of Warcraft, which also released a new expansion earlier this year. Diablo 4’s latest expansion was well-received, even if its latest season seemed to take two steps back. Even Diablo 2: Resurrected, a remaster of a 26-year-old game, received new content in the form of the Reign of the Warlock DLC. Overwatch, meanwhile, underwent a transformation of its own earlier this year, when it dropped the “2” from its name and introduced five new heroes at once.
News that Blizzard is Xbox’s top-performing studio of the last year isn’t exactly a shock, especially considering the poor performance of last year’s Call of Duty: Black Ops 7. But it’s a little surprising Blizzard hasn’t been Xbox’s top performer ever since Microsoft’s acquisition of the studio back in 2023.
Not many studios are capable of operating multiple popular live-service games at once, and Blizzard has three big ones. Though WoW wasn’t cited as a reason for growth, it alone has millions of players paying a monthly subscription fee, and both Overwatch and Diablo seem more popular (and more monetized) than ever. While one of Blizzard’s games individually might not be able to compete toe-to-toe with juggernauts like Call of Duty or Minecraft, it’s clear Blizzard’s entire output combined is a powerful source of engagement and revenue for Microsoft.
As for what’s next for Blizzard, BlizzCon is right around the corner on September 12-13, where there will no doubt be plenty of reveals about the future of Warcraft, Overwatch, and Diablo. Persistent rumors also point towards a new StarCraft game being revealed. Faries said last year 2026 will be Blizzard’s “biggest year yet” and that she wants Blizzard to be the “best gaming and entertainment company in the world.” This year’s BlizzCon will “reflect that ambition in a bigger way,” she said.
