Blizzard is currently the top-performing XBOX studio, according to an internal email. The president of the studio recently celebrated the return to growth ahead of BlizzCon 2026.
The details come courtesy of Windows Central’s Jez Corden, who notes that the studio currently operates separately from Activision as a limited-integration entity. This past week, Blizzard president Johanna Faries sent an email to staff celebrating the studio’s success and return to growth.
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Blizzard Celebrates Return to Growth as XBOX’s Top Studio
Based on the email details, the studio concluded fiscal year 2026 as XBOX’s top-performing studio and achieved its third-highest annual revenue ever. Faires also noted that Overwatch drove its most successful quarter since 2022, and that this success will allow it to invest even more in Blizzard games and staff.
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.
XBOX is in the midst of an overall reset. Details of that reset include several Studios being spun off or returning to Independent status. Also, once all of the restructuring is complete, there will have been thousands of cuts. Still, top executives at Microsoft expect the XBOX brand to return to growth in the next fiscal year.
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