Blizzard is reportedly Xbox’s best-performing studio, says revenue in its last fiscal year was its third-highest ever
Diablo 4: Lord of Hatred and Overwatch were named as strong contributors
Blizzard was the highest performing Xbox studio during the company’s last fiscal year, according to a reported internal email sent to staff.
The email, reportedly written by Blizzard president Johanna Faries to staff and forwarded to Windows Central, states that the last financial year – the period from July 1, 2025 to June 30, 2026 – was the third-highest for revenue in the studio’s history.
“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,” Faries’ email read.
It also stated that, for a studio that’s seen rises and falls over the years, fiscal years 2025 and 2026 “were our first back-to-back years of growth since FY17”.
Faries told staff that the main reasons for its high revenue in the last financial year were Overwatch and the second expansion for Diablo 4, Lord of Hatred, which was released in April.
“Diablo 4: Lord of Hatred and Overwatch drove exceptional performance in particular, with Overwatch delivering its strongest quarter since 2022,” she said.
She added that the company’s strong financial results will help it to invest more in Blizzard games and staff, as well as other initiatives that will “shape Blizzard’s future”, though it appears she didn’t specify what that entails.
Blizzard’s reported success for the financial year ending June 2026 will have been at least one consolation for Xbox, which saw an overall decline in revenue over the year.
According to its Q4 FY2026 results – which cover the period from April 1 to June 30, 2026 – Xbox content and services revenue declined 10% compared to the same Q4 results the previous year, with hardware revenue also dropping 13%. Similar declines were also reported in Q1, Q3 and Q3.
Last month Xbox CEO Asha Sharma posted on X that the expectation was that the company would start seeing ‘growth’ again by the end of FY2027 (which ends June 30, 2027).
