The leak in one sentence (yes, it’s juicy)
An alleged internal email — reportedly from Blizzard president Johanna Faries and leaked to the press — says Blizzard was Microsoft’s most profitable studio in the fiscal year running July 1, 2025 to June 30, 2026. The note even claims it was one of Blizzard’s three biggest revenue years ever. Wild, right?
The short version: Diablo 4’s Lord of Hatred expansion and a surprisingly strong year for Overwatch pushed Blizzard ahead, while other big names in Xbox’s portfolio didn’t exactly set the world on fire. Call of Duty: Black Ops 7 underperformed and Candy Crush had a rough stretch, according to the message.
Why gamers should care (and what this means for teams)
From a player perspective this matters because studios that make money tend to get more resources. The leaked message says Blizzard has posted back-to-back growth for the first time since 2017, calling out Diablo 4 and Overwatch as the engines behind that turnaround. That kind of momentum usually translates into more investment in new content, staff, and long-term projects.
That said, Xbox’s broader cost-cutting plans are still in play. The company already cut around 1,600 jobs and reportedly expects roughly the same number more before the fiscal year ends. The initial round didn’t hit Blizzard as hard — some other studios left the Xbox fold or were pared back, including Double Fine, Ninja Theory, and Undead Labs, while teams like Arkane are still figuring things out. Bethesda and some of its groups, including id Software, also faced layoffs.
One more spicy tidbit: there’s a rumor floating that World of Warcraft developers may be working on a StarCraft shooter. Treat that as unconfirmed gossip for now — the leaked email didn’t formally announce new projects.
The takeaway is simple: if the leak is legit, Blizzard’s recent hits bought it breathing room and likely more budget, which is good news for fans hoping for fresh content. But Microsoft’s bigger restructuring isn’t finished, so studio stability beyond Blizzard is still up in the air.
