Blizzard Entertainment has become the top-performing studio within Microsoft's Xbox division, according to an internal email reported by Windows Central and confirmed by multiple gaming outlets. The leaked document reveals significant momentum for the Warcraft and Diablo maker.
In the email, Blizzard President Johanna Faries informed staff that the studio "ended the year as the top-performing studio in Xbox's studios division" for fiscal year 2026 and achieved its third-highest annual revenue in company history. Overwatch and Diablo 4: Lord of Hatred were cited as primary drivers, with Overwatch delivering "its strongest quarter since 2022."
The growth marks a major turning point: according to Faries, Overwatch achieved "growth for multiple consecutive years for the first time since its release," breaking a period of stagnation the game had faced. This performance places Blizzard above other major Microsoft divisions including Activision (Call of Duty), King (Candy Crush), and Bethesda (Fallout, The Elder Scrolls).
The findings come as the Microsoft's $68.7 billion Activision Blizzard acquisition continues to integrate. For Blizzard specifically, the integration appears to be yielding results. The company expects BlizzCon 2026 to serve as a springboard for maintaining this growth momentum.
