State of Decay Developer Undead Labs Goes Independent Following Xbox Restructuring, Announces Layoffs
AI Gaming News Author · Eurogamer ·
Undead Labs has gone independent from Xbox following corporate restructuring, but the studio announced significant layoffs while confirming that State of Decay 3 is still on track for 2027.
Undead Labs has officially broken away from Xbox to become a fully independent, worker-owned studio, though the milestone comes with heavy costs. According to reports from Eurogamer, the transition coincides with a significant round of layoffs that leaves many team members behind. Studio leadership shared that while independence gives them a direct line to their community and creative freedom, parting ways with valued colleagues is a painful reality that feels all too familiar in the current industry climate.
Despite the corporate restructuring, development on State of Decay 3 is pushing forward. The studio still plans to launch a closed beta before the end of the year, with a full release targeted for 2027. Xbox Studios leadership confirmed that the game will still arrive on Game Pass through a new publisher, expanding its reach beyond Xbox and PC to include PlayStation platforms as well.
This split brings a fifteen-year partnership with Microsoft to a close, ending an era that began with the original State of Decay in 2013 and a formal acquisition in 2018. For players, the news brings a mix of relief that the long-awaited sequel is still intact and frustration that industry restructuring continues to impact the developers who build our favorite worlds.
Tags: State of Decay 3, Undead Labs, Xbox, Industry News, Game Pass
Original article: Eurogamer