XBOX's top performing studio 'revealed' in internal memo

XBOX's top performing studio has been reportedly 'revealed' after an internal memo is claimed to have been obtained and verified.

Windows Central reports it obtained a leaked internal email from Blizzard Entertainment, the makers of Overwatch, Diablo and World of Warcraft, which it verified saying Blizzard is the top performing studio owned by XBOX.

Blizzard was acquired by XBOX as part of its purchase of Activision Blizzard for $69bn which was finalized in October 2023.

Blizzard is no longer part of Activision and is its own studio within the XBOX gaming division.

And the email, reportedly sent by Blizzard president Johanna Faries, revealed Blizzard had a strong Fiscal Year and returned to growth despite XBOX going down by 11 per cent.

Faries is reported to have said in the email: "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."

Overwatch 2 being rebranded and relaunched as Overwatch in February 2026 is understood to have had a big part to play in this as Faries is reported to have said Blizzard has had two consecutive quarters of growth for the first time in a decade.

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

Neither Blizzard or XBOX have officially confirmed this internal email at the time of writing.

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