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Leaked emails reveal Blizzard is Xbox's top-performing studio for FY26

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Leaked emails reveal Blizzard is Xbox's top-performing studio for FY26

Diablo 4 and Overwatch credited with driving Blizzard's first back-to-back growth years since 2017

Blizzard closed Microsoft's 2026 fiscal year as the best-performing studio within Xbox Game Studios, according to internal emails obtained and verified by Windows Central.

Blizzard president Johanna Faries shared the results with staff in an email ahead of BlizzCon 2026, pointing to Diablo 4: Lord of Hatred and Overwatch as the drivers behind the studio's second consecutive year of growth.

"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 wrote.

She also singled out Overwatch as having delivered "its strongest quarter since 2022".

Microsoft does not break out studio-level revenue in its public financial disclosures, and neither the company nor Blizzard has publicly confirmed the figures cited in the leaked emails. The reported growth, however, stands in contrast to the wider Xbox division.

Blizzard is expected to detail its upcoming slate at BlizzCon 2026, running from September 12 in Anaheim.

Blizzard has continued to operate with a degree of separation from the rest of Microsoft's games business since the acquisition completed in October 2023 following the conclusion of an investigation by the UK's Competition and Markets Authority.



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