Blizzard named Xbox's top-performing studio despite taking layoffs cuts in the same division

Leaked internal emails reported by Windows Central and Eurogamer show Blizzard ended fiscal year 2026 as the top-performing studio in Microsoft's Xbox division, posting its third-highest revenue year ever. The result came as Microsoft cut 3,200 roles across Xbox studios, with Blizzard itself affected despite outperforming stablemates.