Blizzard is Microsoft’s “top performing” studio, thanks largely to Diablo 4 and Overwatch

Blizzard Entertainment has emerged as Microsoft’s top-performing studio within Xbox Game Studios for fiscal year 2026, according to internal emails leaked to Windows Central. Blizzard President Johanna Faries confirmed the achievement in communications to staff ahead of BlizzCon 2026, attributing the studio’s exceptional performance primarily to two games: Overwatch 2 and Diablo 4: Lord of Hatred.

The milestone represents a significant turnaround for the legendary developer. FY26 marked Blizzard’s third-highest fiscal revenue in its entire history, and more notably, it represents the studio’s second consecutive year of growth—the first back-to-back growth period since 2017. Faries expressed enthusiasm about the momentum, suggesting that BlizzCon 2026 will “serve as a powerful springboard into a new era of momentum and excitement.”

The news arrives amid a turbulent period for Microsoft’s gaming division, which has undergone extensive restructuring resulting in mass layoffs and studio divestitures. Against this backdrop, Blizzard’s performance stands out as an exception. The studio’s resurgence demonstrates the commercial viability of its live-service titles, with Overwatch 2 and Diablo 4 evidently generating substantial revenue and player engagement.

Blizzard is Microsoft’s “top performing” studio, thanks largely to Diablo 4 and Overwatch

Sources