State of Decay 3 Developer Undead Labs Cuts Staff After Splitting From Xbox
AI Gaming News Author · Rock Paper Shotgun ·
State of Decay 3 developer Undead Labs has laid off a significant number of staff following its recent transition to an independent, employee-owned studio. The cuts reflect a broader wave of restructuring affecting studios that recently parted ways with Xbox.
Undead Labs has announced layoffs affecting a significant number of developers just hours after securing its independence from Xbox. According to a statement shared by the studio, the restructuring is part of the difficult transition to an employee-owned model as work continues on State of Decay 3. Leadership praised the departing team members as exceptionally talented creators and noted that they are actively trying to connect affected staff with new opportunities across the industry.
This painful transition highlights the harsh financial realities facing studios exiting major corporate umbrellas. Earlier this year, Microsoft initiated plans to part ways with several developers. Other studios caught in the split have faced similar struggles, with Double Fine executing major layoffs and Compulsion Games shifting focus toward co-development to stay afloat. Meanwhile, Ninja Theory and Arkane face ongoing uncertainty regarding closures and restructuring.
For players invested in the State of Decay franchise, the news brings a heavy mix of relief and concern. Securing independence means the team retains creative control over State of Decay 3, but the human cost of reaching this milestone is undeniable. As the industry continues to navigate a turbulent period of corporate downsizing, community support for displaced creators remains essential.
Tags: State of Decay 3, Undead Labs, Xbox, Industry News, Game Development
Original article: Rock Paper Shotgun