State of Decay 3 Dev Undead Labs Gains Independence from Xbox
Undead Labs, the studio behind the long-awaited State of Decay 3, has officially broken free from Microsoft and Xbox to become a fully independent developer. The announcement came amid broader chaos surrounding Xbox, with Polygon reporting that the studio has secured its independence and remains on track to release State of Decay 3 in 2027. The news was welcomed by fans as an encouraging sign that the project is pressing forward, even as the wider Xbox landscape continues to shift.
The transition has not come without costs, however. Following the split, Undead Labs confirmed it underwent "significant" layoffs, according to IGN. The studio responded to the cuts publicly, acknowledging the difficulty of the situation while signaling its commitment to continuing development as a standalone entity. It is a bittersweet moment for the team, as the newfound creative freedom comes at the expense of a portion of its workforce.
Key Insights
- 1Undead Labs is now fully independent from Microsoft and Xbox, ending its relationship as a first-party studio.
- 2State of Decay 3 is still in development and is currently targeting a 2027 release.
- 3The studio confirmed 'significant' layoffs occurred in the wake of its independence from Xbox.
- 4The news arrives amid broader turbulence across the Xbox ecosystem.
- 5Despite the workforce reductions, Undead Labs has signaled its commitment to completing State of Decay 3 as an independent developer.
Sources
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