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Blizzard Surges as Xbox Revenue Plummets

Guavy AI Editorial Team
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MSFT
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Microsoft's gaming division is facing challenges as Xbox revenue falls by $1.7 billion due to weaker console sales and lower earnings from content and services.

However, Blizzard, Microsoft's most profitable studio, has achieved record figures with its third-best year on record.

In a letter to staff, Johanna Faries, Blizzard's president, mentioned the upcoming BlizzCon event and highlighted the success of Diablo 4: Lord of Hatred and Overwatch, which posted its strongest quarter since 2022.

Faries noted that the financial years 2025 and 2026 were the first consecutive years of growth since 2017, thanks to Blizzard's exceptional performance.

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