Blizzard Just Proved Everyone Wrong About Its Future

Blizzard is reportedly now the top-performing studio inside Xbox.According to internal emails verified by Windows Central, Blizzard finished Microsoft’s FY26 as the top-performing studio in Xbox’s studios division and recorded its third-highest fiscal year ever for revenue. Diablo and Overwatch helped drive the growth, with Overwatch reportedly delivering its strongest quarter since 2022.That comes as Xbox overall finished the fiscal year down 11%, making Blizzard one of Microsoft Gaming’s biggest bright spots heading into BlizzCon 2026.