Blizzard has emerged as the highest-grossing studio under the Xbox umbrella over the past year, with Overwatch and Diablo 4 acting as the primary engines driving this financial success.

According to a report by the US tech outlet Windows Central on the 8th (local time), Blizzard President Johanna Faries sent an internal email ahead of BlizzCon 2026, set for this September. The report reveals that for the Microsoft 2026 fiscal year—spanning from last July to this June—Blizzard achieved the highest revenue among all Xbox-owned studios, marking the third-highest annual revenue in Blizzard history.

The primary drivers of this performance were Overwatch and Diablo 4. Overwatch hit its highest quarterly revenue since 2022, while Diablo 4 saw a significant boost from the 'Vessel of Hatred' expansion released last April. President Faries stated that this success provides the momentum to reinvest in Blizzard games, staff, and various business ventures to secure the company’s future.

It is worth noting that Microsoft’s overall Xbox content and services revenue dropped by 10% year-on-year last quarter, and the company faced a restructuring affecting 3,200 roles back in July. Even amidst this climate, Blizzard has managed to hold its ground, with President Faries confirming in the email that the company has seen two consecutive years of growth. The key question is whether this momentum can be sustained moving forward.

Meanwhile, all eyes are on BlizzCon 2026, which takes place on September 12th and 13th (local time). Interest is high regarding what major announcements will emerge from the event.