State of Decay 3 Studio Undead Labs Reportedly Faces Potential Closure After Xbox Showcase Reveal

State of Decay 3, Which Was at Xbox Games Showcase and Is Currently Running Playtests, Reportedly at Risk of Cancelation as Buyer Sought for Undead Labs

Open the article to view the coverage from IGN

‘State of Decay 3’ Dev Undead Labs Facing Potential Closure

Overshadowing the announcement of Ninja Theory’s third entry in the Hellblade series earlier this month were reports that the developer was facing possible closure by Microsoft, alongside South of Midnight developer Compulsion Games and Double Fine. Now according to a new story by GamesBeat, another developer under the Xbox Game Studios umbrella is potentially facing closure in Undead Labs, who are currently working on State of Decay 3. Earlier …

State of Decay 3 Studio Undead Labs Reportedly Faces Potential Closure After Xbox Showcase Reveal

Undead Labs, the Microsoft-owned studio behind State of Decay 3, is reportedly among the Xbox teams facing an uncertain future. The report comes only weeks after State of Decay 3 received a major gameplay reveal during the Xbox Games Showcase 2026, where Microsoft positioned the long-awaited zombie survival sequel for a 2027 launch across Xbox […]

State of Decay 3 Developer Undead Labs Reportedly at Risk of Closure Ahead of Expected Xbox Layoffs

Fresh reports suggest Undead Labs, the studio behind State of Decay 3, could be among the developers affected by Microsoft's anticipated Xbox layoffs. While Mic

State of Decay 3 Could be Cancelled as Microsoft May Sell Undead Labs

The future of State of Decay 3 has become uncertain following reports that Microsoft is considering selling its developer, Undead Labs. While the company has not officially confirmed the claims, the reports have sparked concern among fans who have been eagerly waiting for the zombie survival sequel. It has been revealed by Windows Central and Gamesbeat that Microsoft is trying to find ways to sell the Seattle-based developers in order to restruc…

State of Decay studio Undead Labs potentially up for closure, sources claim, with Bethesda and Blizzard also facing layoffs

Microsoft may close State of Decay developers Undead Labs as part of Xbox's imminent hewing back of projects and livelihoods, with Elder Scrolls studio Bethesda and World of Warcraft creators Blizzard also facing significant layoffs in the course of what an anonymous insider has called “the biggest single cut series for Xbox". To put that quote in context, the company laid off around 1900 Microsoft gaming workers back in January 2024. Xbox union…