Blizzard Surges Ahead as Xbox Revenue Plummets

Blizzard has emerged as Microsoft's most profitable studio, defying the declining trend of Xbox's revenue. According to a letter from Blizzard President Johanna Faries, the past year was one of the best in the company's history.

The upcoming BlizzCon event on 12 September aims to showcase the studio's achievements and momentum. In FY26, Blizzard had its third-best year on record, while Xbox's revenue fell by $1.7 billion. This marks the first consecutive years of growth since 2017, thanks in part to the success of Diablo 4: Lord of Hatred and Overwatch.

Blizzard's exceptional performance enabled the studio to invest further in games, staff, and other initiatives. In contrast, Xbox underwent significant changes this year, including leadership shifts and redundancies. Several studios will be closed or sold, with thousands of employees made redundant as part of these reforms.

Despite these challenges, Blizzard continues to thrive, working on new content for Diablo and a StarCraft shooter while its existing projects generate multi-million profits.