While generally bad news has been circulating around Xbox for months, a leaked internal email strikes a completely different chord. According to a report from Windows Central, Blizzard Entertainment is reportedly by far the best-performing studio in the entire Xbox portfolio – and this comes in a fiscal year where other divisions of the company are under massive pressure.
What the Leaked Email Reveals
The internal memo was penned by Blizzard President Johanna Faries. In it, she describes the recently concluded fiscal year (July 2025 to June 2026) as the third-best revenue year in the studio's history. Two titles are said to be the main drivers: Overwatch reportedly achieved its best quarter since 2022, while the Diablo 4 add-on „Lord of Hatred“ also significantly contributed to growth. According to the leak, Blizzard even substantially exceeded Microsoft's internal revenue projections – making it currently more profitable than Call of Duty, which is often considered a flagship brand.
Why This Is a Big Deal for Xbox Right Now
The context makes this leak particularly sensitive: the Xbox division as a whole reportedly lost around 11 percent in revenue last year, and several studios within the Microsoft portfolio recently had to cut jobs – we recently reported how multiple developers at Halo Studios lost their jobs after the launch of Campaign Evolved. Against this backdrop, Blizzard's success story almost feels like a counter-narrative. From our perspective, the leak primarily shows how differently individual studios within the vast Microsoft gaming conglomerate are currently performing – and how much live-service successes like Overwatch and Diablo 4 are now paying off, while classic single-player flagships like Halo are struggling with upheavals. Neither Microsoft nor Blizzard has officially confirmed the figures from the email so far.
Source: Windows Central, PC Gamer
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