A leaked internal email from Blizzard has revealed that Overwatch is now one of Xbox’s top-earning games. The online hero shooter reportedly delivered its strongest quarter since 2022, suggesting that Blizzard’s major rebrand has brought Overwatch back to life in a big way.
Overwatch Delivers Its Strongest Quarter Since 2022
Blizzard became the highest-performing Xbox studio during the 2026 fiscal year, according to a leaked email from President Johanna Faries. This latest update comes from Windows Central’s Jez Corden, who verified the report. According to the internal email, both Diablo and Overwatch played key roles in the company’s roaring success this past year.
“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. Diablo 4: Lord of Hatred and Overwatch drove exceptional performance in particular.” However, Faries then revealed that Overwatch also delivered its strongest financial quarter since the launch of Overwatch 2. “Overwatch delivered its strongest quarter since 2022.”
That’s a pretty massive deal, as it suggests that Overwatch has finally regained some of the momentum it lost following the controversial release of Overwatch 2. The multiplayer game has essentially risen from the ashes and returned to the financial performance it last achieved more than four years ago, which is a shocking comeback.
Overwatch Rebrand Appears to Have Paid Off
When Overwatch 2 launched in 2022, it was largely disliked by players because it never felt like a true sequel. Blizzard replaced the original game with a controversial 5v5 format, aggressive monetization, expensive skins, and a battle pass, only to later cancel the ambitious PvE mode that was originally used to justify the sequel.
Combined with ongoing balancing and matchmaking issues, many fans felt that Overwatch 2 took away more features than it added. All of this resulted in many players walking away from the game and the hero shooter experiencing a major decline in popularity.
However, in February 2026, Blizzard announced that the game was dropping the “2” and rebranding back to simply Overwatch. The hero shooter was relaunched with five new heroes, a new storyline, updated progression systems, hero sub-roles, and the return of features such as loot boxes.
The rebrand has apparently paid off in a big way, as Overwatch has now delivered its strongest financial quarter since 2022. The fact that Blizzard achieved this within six months of dropping the “2” makes the game’s revival all the more impressive. While the leaked email doesn’t reveal exact earnings, it confirms that Overwatch has once again become one of the biggest financial performers across Xbox’s studios.
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