Undead Labs, the Seattle-based developer behind the State of Decay games, has survived the latest round of Xbox layoffs.
However, the studio has reiterated that it'll no longer operate under the Xbox umbrella; it's now an independent outfit. This direction of travel was previously confirmed a few months back, when the developer said that it was "transitioning out of Xbox".
Unlike Ninja Theory, which is shutting down after being unable to find a buyer, Undead Labs seems to possess the financial stability to stay afloat.
"Independence brings us closer to our community and lets us focus on what matters most: making the best games we can and earning the continued support of the people who choose to spend their time with us," reads a statement from studio head Philip Holt.
Undead Labs became part of Microsoft's gaming division in 2018, but it had been partnering with the company since 2011.
Holt goes on to acknowledge that lengthy relationship: "Microsoft has been part of the State of Decay story from the very beginning, and we’re proud of everything we’ve accomplished together."
Despite the shift, State of Decay 3 remains in development — which makes sense, seeing as it was announced over six whole years ago at this point. It's currently in alpha, and it's still targeting a 2027 release on PS5.
There'll also be a closed beta test before the end of 2026.
سەرچاوەی فەرمی بە زمانی ئینگلیزی: https://www.pushsquare.com/news/2026/09/state-of-decay-dev-survives-xbox-layoffs-goes-independent-as-third-game-targets-ps5