Blizzard reportedly ended FY26 as the top-performing studio in Xbox's studios division, according to an internal email sent to employees from Blizzard president Johanna Faries and reported by Windows Central's Jez Corden. The email celebrated the studio's success and noted that FY26 marked Blizzard's third-highest fiscal year for top-line revenue in company history.
The message reportedly landed on the heels of a lackluster earnings report for Xbox, with Faries said to have told staff that Blizzard is "firing on all cylinders." The internal communication also highlighted that FY25 and FY26 represented the studio's first back-to-back years of growth since FY17, marking a notable turnaround for the company.
Faries reportedly credited specific titles for driving the performance, with Diablo 4: Lord of Hatred and Overwatch delivering exceptional results. Overwatch reportedly posted its strongest quarter since 2022 during this period, and Blizzard stands as the only Xbox studio with multiple live services growing year-over-year across PC, console, and mobile.
The studio operates as a limited-integration entity within Xbox. This performance comes even as the broader Xbox division faced headwinds, with the studio outpacing other teams under the Xbox banner despite what some described as larger marketing budgets and more favorable release windows elsewhere.
The email also reportedly showed excitement for the upcoming BlizzCon event scheduled for September 12th and 13th in Anaheim, California. The reported performance figures arrive roughly a month after Xbox announced 1,600 role eliminations, with minimal reductions planned at Blizzard given the studio's strong showing.
