- Blizzard over-delivered against Microsoft’s FY26 projections, according to internal emails.
- Overwatch is said to have posted its best performance since 2022.
- Other franchises like Diablo also performed well, leading to hopes for more investment in future Blizzard projects.
Following news regarding layoffs, studio headcount reductions, and more, Xbox may have finally received its first bit of good news over the last few weeks.
In what appears to come as a surprise, Blizzard is performing quite well following a series of hiccups over the years. In particular, the studio is said to be Xbox’s top-performing team at the moment.
Why it matters: Xbox’s big bet on Activision Blizzard continues to pay off, even while its other studios struggle to produce results.
According to Windows Central, Blizzard ended FY26 ahead of Microsoft’s projections, with Overwatch delivering its best performance since 2022.
This turnaround is encouraging since Overwatch was performing poorly only a year or two ago, but team’s recent rebrand appears to have breathed new life into the game. As per the report, Blizzard credited Overwatch and Diablo 4: Lords of Hatred for this successful fiscal year.
Moreover, studio president Johanna Faries says that FY26 marks the studio’s 3rd best year ever in terms of revenue. This is also the first time the team has seen consecutive years of growth since Overwatch’s launch in 2016.
The president says that this performance will drive further investments in the studio’s portfolio and shape the future.
In FY26, Blizzard ended the year as the top-performing studio in Xbox’s division.
Blizzard is set to share more updates regarding the future at BlizzCon next month. Perhaps most exciting among the team’s current projects is the rumored StarCraft shooter, though there’s no telling when this game will show up.
What do you think Blizzard’s reported rise means for Xbox’s first-party future? Let’s discuss below.
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Sajjad Hussain is the Founder and Editor-in-Chief of Tech4Gamers.com. Apart from the Tech and Gaming scene, Sajjad is a Seasonal banker who has delivered multi-million dollar projects as an IT Project Manager and works as a freelancer to provide professional services to corporate giants and emerging startups in the IT space.
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