Blizzard Becomes Xbox’s Top-Performing Studio, President Tells Staff, as Diablo 4 and Overwatch Fuel Back-to-Back Growth

Around a month ago, Bloomberg's Jason Schreier confirmed that Blizzard was among the rosiest divisions under the Xbox umbrella, having successfully rebuilt momentum across all its main franchises ( Warcraft, Diablo, and Overwatch ), though that doesn't necessarily make it immune to the upcoming second wave of Xbox layoffs mandated by CEO Asha Sharma .

Yesterday, Windows Central posted tidbits from an internal email that Blizzard president Johanna Faries sent to its employees last week, touting the division's success. According to Faries, Blizzard is now Xbox's top-performing studio:

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 year 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.

Faries, the former general manager of the Call of Duty series at Activision who assumed the role of Blizzard president in early 2024, also teased the upcoming BlizzCon (September 12-13):

The BlizzCon weekend will reflect the bold and collaborative work of everyone reading this. 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.

Windows Central's Jez Corden added that, besides the expected reveal of World of Warcraft: The Last Titan and the long-rumored third-person StarCraft shooter , Blizzard might also reveal new mobile projects and transmedia adaptations for film or TV.

Neither comes as a surprise. Diablo Immortal confirmed there's still untapped potential in the mobile market for Blizzard's IPs; as for the adaptations, Faries boasted earlier this year that each of the company's IPs could be turned into some of the greatest linear media experiences .

Do you have a preference for which franchise to adapt first? Share a comment below with your thoughts!

Alessio Palumbo Photo

About the author : With over two decades of experience in gaming journalism, Alessio Palumbo has led the gaming vertical at Wccftech since August 2015. He started working at a young age for Italian websites like Everyeye.it, Gamestar.it, Nextgame.it, and Multiplayer.it before kickstarting the indie English-language publication Worlds Factory as its founder and Editor in Chief. In the last decade, he has coordinated the overall output of Wccftech's gaming section, managed PR relations, assigned reviews, produced daily news coverage, edited gaming content as needed, and delivered game reviews. Arguably, his trademark content is the long series of exclusive developer interviews that have been cited by Wikipedia and by the biggest news media and gaming publications. His passion for technology also makes him knowledgeable when it comes to gaming hardware and tech. His favorite genres include RPGs, MMORPGs, and action/adventure games.

Follow Wccftech on Google to get more of our news coverage in your feeds.