Undead Labs confirmed significant layoffs following its independence from Xbox, but studio head Philip Holt stated that State of Decay 3's 2027 launch will not be affected. The developer separated from Xbox as part of Microsoft's broader restructuring and is now operating as an independent studio.
Undead Labs, developer of State of Decay 3, has completed its separation from Xbox after over a decade and is now an independent, employee-owned studio. The team continues development on State of Decay 3, which remains in alpha with a closed beta planned before year-end and a 2027 launch targeted for PS5, Xbox, and PC.