Blizzard Reportedly Becomes Xbox’s Top-Performing Studio After Two Years of Growth

Blizzard is reportedly the top-performing studio inside Xbox’s studios group, according to internal emails from Blizzard president Johanna Faries that were verified by Windows Central.

The emails also say Blizzard posted back-to-back growth across fiscal years 2025 and 2026, marking its first two-year growth streak since fiscal year 2017. That’s a notable turn for the company, especially while Xbox’s wider gaming division has been dealing with layoffs, studio closures, and other cuts following Microsoft’s Activision Blizzard acquisition.

Diablo 4 and Overwatch were reportedly called out as major contributors. Overwatch, in particular, was said to have delivered its strongest quarter since 2022. The report doesn’t break down exact revenue, player counts, or platform splits, so it’s hard to say how much each franchise contributed.

The timing is also useful for Blizzard. BlizzCon is returning next month, giving the studio a large stage to talk about what’s next across World of Warcraft, Diablo, Overwatch, and its other franchises. World of Warcraft is still in the middle of its Worldsoul Saga rollout, while Diablo 4 and Overwatch remain active live-service games with regular seasonal updates.

For now, the main takeaway is simple: Blizzard appears to be one of Microsoft Gaming’s stronger performers at a time when Xbox is still tightening costs elsewhere. What that means for future projects, hiring, or long-term support is still unclear.