Blizzard Entertainment appears to be hitting a major upswing, with Overwatch delivering its strongest quarter since 2022 and the company finishing Microsoft’s FY26 as the top-performing studio within Xbox’s studios division. The milestone comes as Blizzard continues to build momentum across several of its biggest franchises.
In brief:
- Overwatch delivered its strongest quarter since 2022.
- Blizzard was the top-performing studio in Xbox’s studios division during FY26.
- FY25 and FY26 marked Blizzard’s first consecutive years of growth since FY17.
- Blizzard recorded its third-highest fiscal year for top-line revenue in company history.
According to internal emails from Blizzard President Johanna Faries, Overwatch was one of the biggest contributors to Blizzard’s strong FY26 performance.
Faries said Overwatch delivered its strongest quarter since 2022, while Diablo 4: Lord of Hatred also helped drive what she described as exceptional performance for the company. Exact revenue, player count, or engagement figures for Overwatch were not disclosed in the report.
The result is particularly notable after several turbulent years for Blizzard’s hero shooter. Overwatch has undergone major changes since 2022, and its recent performance suggests the game is finding renewed momentum heading deeper into 2026.
Blizzard Becomes Xbox’s Top-Performing Studio
The success was not limited to Overwatch. According to Faries, Blizzard finished FY26 as the top-performing studio in Xbox’s studios division and recorded its third-highest fiscal year for top-line revenue in Blizzard history.
FY25 and FY26 were also Blizzard’s first back-to-back years of growth since FY17, making the current run one of the company’s strongest sustained periods in years.
Microsoft reported that overall Xbox revenue fell 10 percent year over year in FY26 Q4, while Xbox content and services revenue also declined 10 percent.
While Blizzard has not released detailed numbers showing exactly how much Overwatch has grown, its strongest quarterly performance since 2022 is a major positive sign for the franchise.
With Blizzard now leading Xbox’s studios division internally and posting consecutive years of growth, Overwatch looks to be playing an important role in one of Microsoft’s strongest-performing gaming businesses.
