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Blizzard joined forces with Xbox through the Activision acquisition a few years back, and whilst it's been a rough year for Microsoft's Xbox division, it seems the Overwatch maker is kicking butt.
As reported by Windows Central, leaked internal emails from Blizzard President Johanna Faries congratulated the team for ending FY26 "as the top-performing studio in Xbox's studios division".
"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."
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Faries continued by crediting Blizzard's "back-to-back years of growth" to two games in particular: Overwatch and Diablo IV. This is the first time the company has achieved consecutive years in the positive since Overwatch debuted back in 2016.
"Diablo 4: Lord of Hatred and Overwatch drove exceptional performance in particular, with Overwatch delivering its strongest quarter since 2022."
BlizzCon 2026 is set to kick off on September 12, with the Blizzard boss sounding extremely positive about what's ahead:
"It's my hope that the event can shine a light on the work underway at Blizzard, and that it can serve as a powerful springboard into a new era of momentum and excitement behind our mission to bring joy and belonging for communities worldwide."
It's good news for Blizzard then, which appears to have a few things up its sleeve, including cinematic support for the upcoming Fable release. The stuff Blizzard cooks up for World of Warcraft is phenomenal, so we're keen to see what the team have put together alongside Playground Games.
This is also a welcome change of pace considering the difficult year Microsoft has had in gaming, with Xbox Q4 revenue down 10% YoY, 3,200 job cuts announced across the company, and parting ways with several studios.