Blizzard becomes Xbox's top-performing studio in FY26

Leaked internal emails from Blizzard President Johanna Faries reveal that Blizzard Entertainment has become the top-performing studio within the Xbox division for fiscal year 2026. This financial success comes at a time when the broader Xbox division has faced challenges, including an 11% revenue decline and significant restructuring involving thousands of layoffs across various studios.

Blizzard’s performance is characterized by its third-highest fiscal year in company history and its first two consecutive years of growth since 2017. This turnaround is primarily attributed to the strong performance of key franchises, specifically the success of the Diablo IV expansion, ‘Lord of Hatred’, and Overwatch, which recently recorded its strongest quarterly results since 2022.

The studio is preparing for BlizzCon 2026, scheduled for September 12–13 in Anaheim, which is expected to serve as a major platform for upcoming announcements. Anticipated reveals include updates on World of Warcraft, potential new projects for mobile and trans-media, and further details regarding the studio’s long-term roadmap.