Blizzard grows for the second year in a row for the first time in ten years thanks to Overwatch and Diablo 4

Blizzard Entertainment is the studio that has delivered the strongest results among Xbox’s internal studios, delivering for the first time in almost a decade two straight years of growth. And the reason comes down to two titles in particular. Overwatch and Diablo 4: Lord of Hatred have surpassed all expectations, enjoying a major resurgence that has helped lift the company back to the top it seemed they had lost.

A comeback in every sense

In an internal email obtained by Windows Central, Blizzard president Joanna Faries said that the company “has ended the year as the best-performing studio in Xbox’s studios division, and this past year marked our best third fiscal year by gross revenue in Blizzard’s history”. This shows that the company has finally found the right formula with its games.

She says this is because “Diablo 4: Lord of Hatred and Overwatch have performed exceptionally well in particular, with Overwatch having its best quarter since 2022”. This confirms that the name change, changing its name from Overwatch 2 to Overwatch, was a good decision.

It also put much greater emphasis on updates and picking the right collaborations. With collaborations as popular as those with Persona, Hello Kitty or the k-pop group Le Sserafim, it seems Overwatch has returned to its glory days after a stretch in which it just wasn’t quite working. That has worked well for Blizzard and is helping make it Microsoft’s best studio. Especially important given that they have cut 1,600 jobs across all their studios this year alone, something from which Blizzard is expected to be spared thanks to its strong performance.