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Leaked email: Blizzard finished FY26 as Xbox's top-performing studio

A leaked internal email from Blizzard president Johanna Faries says Blizzard recorded its third-highest annual revenue and finished FY26 as the top-performing studio within Microsoft’s Xbox division. Diablo 4: Lord of Hatred and Overwatch were named as primary revenue drivers, with Overwatch posting its strongest quarter since 2022 and growing for multiple consecutive years for the first time. Blizzard leadership positions BlizzCon 2026 as a springboard for future momentum as Xbox looks to return to growth by FY27 amid wider post-acquisition cost-cutting.

• Blizzard posted its third-largest top-line revenue year ever and was identified as Xbox’s top-performing studio for FY26 by president Johanna Faries.
• Diablo 4: Lord of Hatred and Overwatch drove the studio’s performance; Overwatch delivered its strongest quarter since 2022 and has shown multi-year growth for the first time since launch.
• Blizzard plans to use BlizzCon 2026 to build momentum heading into the next fiscal year.
• The studio’s results come amid Microsoft’s post-Activision acquisition restructuring, which led to 1,900 job cuts and at least one major game cancellation, and an Xbox-wide 3,200-person reset across studios.