According to a report from Windows Central, cited by IGN, GamesRadar+, PC Gamer, and Polygon, an internal email from Blizzard President Johanna Faries told staff that Blizzard "ended the year as the top-performing studio in Xbox's studios division," marking the company's "third highest fiscal for top line revenue in Blizzard's history" for fiscal year 2026. GamesRadar+ notes this places Blizzard above Xbox's other major studios, including Activision (Call of Duty), King (Candy Crush), and Bethesda (Fallout, The Elder Scrolls).
Faries reportedly credited the results to two titles: Diablo 4's Lord of Hatred expansion and a resurgence for Overwatch. Her email states, "Diablo 4: Lord of Hatred and Overwatch drove exceptional performance in particular, with Overwatch delivering its strongest quarter since 2022." Polygon reports the Lord of Hatred expansion launched April 28, 2026, adding new classes, gameplay updates, and additional areas. Multiple outlets note this marks Blizzard's first back-to-back years of growth in nearly a decade — GamesRadar+ and PC Gamer describe it as the first such stretch since shortly after Overwatch's original 2016 launch, while Polygon specifies it is the first time Blizzard has seen consecutive quarters of growth since that launch.
Overwatch's comeback has included dropping the "2" from its title to signal indefinite ongoing support, according to Polygon. Five new heroes were released on Feb. 10, described by Polygon as the most added at once since the game's launch, with a total of ten heroes planned for 2026 and seven released so far. GamesRadar+ adds that the game has also seen seasonal resets and collaborations with brands including Hello Kitty, Persona, and Le Sserafim. A new tank hero, D.Mon, is set to join the game; GamesRadar+ describes her as mech-based with a sword and shield, and Polygon reports her release date as Aug. 11.
Polygon notes that despite this success, Blizzard did not release a wholly new game during the year, instead relying on live-service revenue and DLC sales such as the Diablo 4 expansion.
The reported success comes amid turmoil at parent company Xbox. GamesRadar+ states Xbox has cut 1,600 jobs across its studios with plans for another 1,600 in the coming year, while PC Gamer and Polygon reference a broader Xbox layoff/"reset" affecting more than 3,000 to 3,200 roles, including the spinoff of studios such as Double Fine and Ninja Theory, according to Polygon. PC Gamer notes Blizzard has not been hit by these cuts to the same degree as studios like Double Fine and Zenimax, though a large portion of planned cuts have yet to take effect, and adds that Microsoft and Xbox are targets of the BDS movement protesting corporate ties to Israel's actions against Palestinians. PC Gamer also notes Xbox is aiming to "return to growth" by fiscal year 2027, two years after the Activision-Blizzard acquisition led to 1,900 job cuts and at least one major game cancellation, and points to rumors surrounding the upcoming Blizzcon 2026 — the first since 2023 — including speculation about a Starcraft shooter and a WoW Classic follow-up. Polygon separately notes that Blizzard faced major controversy in past years over workplace misconduct allegations, including a 2021 lawsuit describing a "frat boy" culture, which the company denied, and a 2023 settlement of over $50 million largely directed toward compensation for affected workers.