Image credit: Blizzard Entertainment

While the Xbox division reels as a result of wide-ranging restructuring, that will leave thousands of people without a job, and some studios drastically reduced in size - one Xbox studio appears to be doing exceptionally well. That studio is Blizzard Entertainment.

According to leaked internal emails reported by Windows Central, Blizzard President Johanna Faries applauded the recent "top performing" results of the studio. And this extraordinary performance over the past year is seemingly thanks to two games: Overwatch and Diablo 4.

Here's the new D.Mon character trailer for Overwatch.Watch on YouTube

"In FY26 Blizzard ended the year as the top-performing studio in Xbox's studios division," Faries wrote. "This past year has marked our third highest fiscal for top line revenue in Blizzard's history.

"Diablo 4: Lord of Hatred and Overwatch drove exceptional performance in particular, with Overwatch delivering its strongest quarter since 2022."

Faries also pointed to this year's BlizzCon, Blizzard's returning annual games showcase, where big reveals for its line-up of games are expected to happen. Faries wrote: "It's my hope that the event can shine a light on the work underway at Blizzard, and that it can serve as a powerful springboard into a new era of momentum and excitement behind our mission to bring joy and belonging for communities worldwide."

So: good news for Blizzard, which appears to be in the midst of an upswing of late. It is interesting that World of Warcraft wasn't mentioned explicitly,given the release of the World of Warcraft: Midnight expansion earlier this year, though there are some big WoW-related reveals expected for BlizzCon, so maybe 2027 is its year to steal back the spotlight.

It also comes as Microsoft has conducted some major cuts across nearly all of its studios. Last month, the company announced 3,200 layoffs, with 1,600 of those being implemented immediately and the rest happening between now and next summer. The company is also at the heart of the ongoing BDS boycott, due to Microsoft's links with Israel's military and the genocide in Gaza.

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