Blizzard Tops Microsoft Studios Division Amid Xbox Turmoil

Microsoft's acquisition of Activision-Blizzard has been paying off for the tech giant. According to a leaked email, Blizzard is now reportedly Microsoft's top studio, with its third-biggest year for top-line revenue ever.

The email, attributed to Blizzard president Johanna Faries, praises the team for finishing FY26 as 'the top-performing studio in Xbox's studios division.' Diablo 4: Lord of Hatred and Overwatch drove exceptional performance, with Overwatch delivering its strongest quarter since 2022.

This success comes despite Microsoft being a target of the BDS movement, which protests corporate involvement in Israel's ongoing conflict. Blizzard has not been severely impacted by Xbox's recent layoff 'reset,' but many job cuts are still pending.

Xbox will likely rely on Blizzard to help improve its financials as it attempts to 'return to growth' by FY27. This is a significant challenge, given the 1,900 job cuts and major game cancellations that resulted from Microsoft's acquisition of Activision-Blizzard in the first place.