Microsoft purchased Blizzard as part of its big Activision acquisition a few years ago. The Warcraft maker has had a roller coaster decade in a variety of ways, with downturns in hit franchises like Warcraft and Overwatch prevented the legendary studio from finding its mojo.
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Free from the reins of Activision, Blizzard now operates as a limited-integration entity within Microsoft’s Xbox division, and the results well and truly speak for themselves. Overwatch is arguably better than ever, with a razor-sharp focus on fan feedback and new content. World of Warcraft still has issues with its writing and polish, but the content cadence has never been so consistent. Genre-defining franchise Diablo has also seen a stunning return to form, with an overhaul of the endgame loop atop a truly spectacular expansion in the form of Lord of Hatred.
All of that painstakingly hard work has seemingly paid off. A new email sent by Blizzard President Johanna Faries to staff this past week celebrated the division’s roaring return to growth.
Blizzard President Johanna Faries opened the email rallying the team ahead of BlizzCon 2026, set to go live in Anaheim on September 12, “the weekend will reflect the bold and collaborative work of everyone reading this,” she said. “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.”
Faries also laid out Blizzard’s performance through FY26, which just ended for Microsoft with Xbox 11% down overall (owing to some big franchises like Call of Duty and Candy Crush having a difficult year). While Xbox overall has struggled, Blizzard is one area that continues to thrive and grow.
“In FY26 Blizzard ended the year as the top-performing studio in Xbox’s studios division, and this past year has marked our third highest fiscal for top line revenue in Blizzard’s history.”
Faries went on to explain that FY26 marks the first year Blizzard has seen consecutive quarters of growth since Overwatch launched back in 2016, which is a huge feat considering intense competition from the likes of Roblox, Fortnite, and other service-type entities eating up a lot of the attention.
“Diablo 4: Lord of Hatred and Overwatch drove exceptional performance in particular, with Overwatch delivering its strongest quarter since 2022.” Faries emphasized that the success will help them invest even more in Blizzard games, staff, and other initiatives that will “shape Blizzard’s future.”
BlizzCon could be a really huge moment
The news comes against a fairly negative backdrop at Xbox over the summer, who is known to be seeking cuts to the tune of thousands of employees throughout the next 12 months. Microsoft has already laid off thousands of staff across its divisions, with divestitures hitting Xbox staples like Undead Labs, Ninja Theory, and others. id Software of DOOM fame has been particularly hard hit with cuts, and it remains to be seen what other studios might be hard hit in the coming months.
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Given Faries’ upbeat note, it would be dire indeed if Microsoft’s c-suite spreadsheet spectres decided Blizzard also needed to bear some of the burden of higher-up managerial failings of late. Xbox’s confused strategy over the last few years hurt the division’s revenue diversification, leading to an over-reliance on mega-franchises like Candy Crush, Minecraft, and Call of Duty to subsidize growth. A lack of investment in Xbox’s core, i.e. console, has led to a decline in the division’s most lucrative user base by Microsoft’s own admission. Although incoming Xbox CEO Asha Sharma has begun work to strengthen this aspect of the business.
In September, BlizzCon will offer a glimpse at the near and long-term future of Blizzard’s universes. We should see the next Warcraft expansion, dubbed The Last Titan, revealed in full. I’ve heard Blizzard is working on a variety of mobile game spin offs with partners too, as well as potential trans-media projects similar to Cyberpunk Edgerunners or the Fallout TV show for its own franchises. Blizzard is also known to be working on a StarCraft third-person shooter led by Far Cry director Dan Hay, and the next core Diablo project is also moving ahead.
Who knows what other surprises could be awaiting us? A Heroes of the Storm revival maybe?! Higher-quality remakes of Blizzard classics? Something completely new?! It’s exciting to think about as a long-time Blizzard fan, but more importantly, it’s encouraging to see Blizzard’s industry-leading devs have a spot in the sun after many years of turbulence. Faries and the team at Blizzard should serve as an example for Xbox CCO Matt Booty to follow. Let’s hope (and pray) Microsoft continues to let them cook.
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