- Blizzard has become Xbox's top-performing studio of FY26, thanks to Diablo 4: Lord of the Hatred and Overwatch's success.
- According to the Blizzard CEO, Overwatch delivered its strongest quarter since 2022, while Diablo 4 helped drive the company's performance.
- FY26 also marked the company's first consecutive quarters of growth since Overwatch launched in 2016.
Blizzard Entertainment has emerged as Xbox’s top-performing studio for FY26, according to a report from Windows Central’s Jez Corden on August 9, 2026. Blizzard President Johanna Faries stated in an internal email to Blizzard staff that strong performances from Overwatch and Diablo 4 helped the studio deliver its third-highest annual revenue in company history.
Faries further explained that Blizzard is finally on track to achieve consecutive years of growth for the first time since FY17, when the original Overwatch debuted. She stated that Diablo 4: Lord of Hatred and Overwatch’s success drove this growth with the following quote:
“FY25 and FY26 were our first back-to-back years of growth since FY17. Diablo 4: Lord of Hatred and Overwatch drove exceptional performance in particular, with Overwatch delivering its strongest quarter since 2022.”
About a month ago, Xbox CEO Asha Sharma announced a major restructuring plan, titled the “XBOX Reset”, by planning to lay off around 3,200 Xbox employees and dropping studios like Ninja Theory and Undead Labs in the process.
Along with Xbox outages plaguing the platform and Xbox Game Pass falling short of internal expectations, it’s been quite a cruel summer for the company. However, Xbox’s acquisition of Activision Blizzard has proven to be fruitful in the long run.
Even though Xbox’s revenue was down 10% in Microsoft’s FY26 report, Blizzard’s consistent growth offers a glimmer of hope in these depressing times. Faires stated that this success will help them develop more games, recruit more staff, and deploy initiatives that shape the company’s future.
The Blizzard President further hopes that the event can “shine a light on the work underway at Blizzard,” and can serve as “a powerful springboard into a new era of momentum and excitement behind our mission to bring joy and belonging for communities worldwide.”
Blizzard is preparing for BlizzCon’s grand comeback on September 12, 2026, where players can expect new announcements for World of Warcraft, Diablo, and Overwatch, along with other community events that can further contribute to its continued success at Xbox.
