Leaked internal email puts Blizzard at the top of Xbox's studio ranking

An internal email from Blizzard president Johanna Faries leaked this week with a number that appears in no public filing: in fiscal year 2026, the studio finished as the top performer across Xbox's entire studios division.

The same text calls it Blizzard's third-highest fiscal year for top line revenue ever, and the first time in a decade the company has strung together consecutive quarters of growth. Faries names two drivers: Diablo 4: Lord of Hatred and Overwatch, which posted its strongest quarter since 2022.

World of Warcraft does not show up in the excerpts that circulated. Neither of the two titles Faries highlights is an MMORPG, and the email offers no per-game breakdown beyond those two names.

What gives the claim weight is the contrast with the rest of Microsoft. The Activision and King division closed the year down after Call of Duty: Black Ops 7 underperformed, and this year's cuts hit other studios harder: Double Fine was spun out of the company and saw layoffs shortly after.

The email opens as a rally note ahead of BlizzCon, back in Anaheim on September 12 and 13. Faries writes that she hopes the show works as a springboard into a new era of momentum for the studio.