Xbox owns some of the biggest names in gaming, including Call of Duty, Minecraft, Bethesda, and Blizzard. According to internal emails reported this week, Blizzard finished the latest fiscal year ahead of the rest of the studios division.
Windows Central reports that Blizzard president Johanna Faries told employees the company was the top-performing studio inside Xbox's studios division for fiscal year 2026. She also said Blizzard beat Microsoft's projections and recorded its third-highest fiscal year for revenue.
Calling Blizzard Xbox's most important studio is an interpretation, not an official title from Microsoft. The confirmed language in the reported email is top-performing. Even with that distinction, the result shows how much Xbox now depends on Blizzard's games and their large, active communities.
Three Live Games Give Blizzard an Advantage
Faries credited Diablo 4: Lord of Hatred and Overwatch with especially strong performance. Overwatch reportedly had its best quarter since 2022, while Diablo continued to sell expansions and bring players back for new seasons.
World of Warcraft was not named as the main reason for the growth, but it remains a dependable part of the business. The game has expansions, subscriptions, and a community that has stayed active for more than two decades. Blizzard can make money from several audiences at the same time instead of waiting years between major launches.
GameSpot's report points to that combination as Blizzard's main advantage. Diablo, Overwatch, and Warcraft may not each be larger than every Xbox franchise on their own, but together they create a constant flow of players, updates, subscriptions, and purchases.
