Financial Report Proves Blizzard Has Become the Best Studio for Xbox

According to new financial documents, Blizzard emerged as the most successful gaming studio within Xbox's portfolio for fiscal year 2026. Plenty of people were skeptical back in 2023 about Microsoft acquiring the developer behind franchises like Diablo, Overwatch, and Warcraft, but it looks like the deal is finally paying off.

A new Windows Central report reveals the contents of a letter from Blizzard President Johanna Faries, confirming the studio was the top-performing unit within Xbox for the fiscal year, with particular success cited for games like Overwatch and Diablo 4: Lord of Hatred. You can check out more from the leaked document, provided by a source, below:

“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.

FY25 and FY26 were our first back-to-back years of growth since FY17. Diablo 4: Lord of Hatred and Overwatch drove exceptional performance in particular, with Overwatch delivering its strongest quarter since 2022.”

As Windows Central's Jez Corden points out, BlizzCon is coming up next month, and he expects a host of new projects to be unveiled there, including a new World of Warcraft expansion and several mobile titles. Last month, Bloomberg's Jason Schreier confirmed Blizzard is also developing new projects in the Diablo and StarCraft universes; on the StarCraft front, details on a new entry have already surfaced.

Former Far Cry developer Dan Hay is reportedly leading its development, with the game running on Unreal Engine 5 and featuring a fully open world. The new StarCraft is also claimed to lean more cinematic, closer in style to StarCraft II than to Overwatch. As for Diablo, recently it was revealed that the fourth installment will be available on Switch 2 next month.