Blizzard Entertainment has emerged as the crown jewel of the Xbox game studio division, reportedly outperforming all other internal developers. Driven by the continued success of Overwatch and the Diablo 4: Lord of Hatred expansion, the studio has achieved back-to-back years of growth for the first time since 2017.
Company president Johanna Faries shared the news in internal emails, noting that FY26 marked one of the highest revenue years in Blizzard’s history. This milestone provides a rare bright spot for Xbox, which has otherwise faced a challenging period marked by widespread corporate layoffs and a broader strategic pivot.