Microsoft’s Xbox division has not been having a good year. The company is laying off over 3,000 employees as part of a major “reset” that has led to several acclaimed studios, like Double Fine and Ninja Theory, being spun off from Microsoft ownership. However, it seems that despite the tumultuous times, Blizzard is coming off a very strong performance.
According to a report from Windows Central, leaked internal emails indicate that Blizzard has become the “top performing” studio at Xbox. Blizzard President Johanna Faries sent the message to staff last week to celebrate the studio’s recent success under Microsoft.
“In FY26 Blizzard ended the year as the top-performing studio in Xbox’s studios division, and this past year has marked our third highest fiscal for top line revenue in Blizzard’s history,” Faries’ email allegedly reads. She further explains that fiscal year 2026 (August 2025 to July 2026) was the first time that Blizzard had seen consecutive quarters of growth since Overwatch launched in 2016.
Perhaps the most surprising element of this apparent success is that the studio did not release a new game this past year, and relied on a combination of live service revenue and DLC sales. Diablo 4’s expansion Lord of Hatred was released on April 28, 2026, adding new classes, gameplay updates, and additional areas to explore.
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