All articles tagged with #undead labs
Undead Labs has officially completed its separation from Microsoft, becoming an independent, employee-owned studio. Despite the exit, the developer confirmed that State of Decay 3 remains in active development with a 2027 release target. The game will still launch day-one on Xbox Game Pass, though the studio announced significant layoffs as part of the transition.
Undead Labs has completed its separation from Microsoft/Xbox, becoming an independent, employee-owned studio while continuing work on State of Decay 3. The game is currently in alpha with a closed beta expected by year’s end and is slated for a 2027 launch on PS5, Xbox, and PC, including Game Pass. The move follows Xbox’s broader spin-off plans and layoffs, with Undead Labs emphasizing community trust and a focus on making strong games.
State of Decay 3 will begin a closed beta playtest before the end of 2026, with registration open now. The beta, building on May’s alpha, will stress-test a larger map with untethered multiplayer and improvements to combat, lighting, SFX, weather, visuals, and character movement, with access expanding to more players over time. The game, announced in 2020, is planned for a 2027 release on PC, PS5, and Xbox Series X|S, amid Microsoft’s studio restructuring and sell-offs.
State of Decay 3 will move from its alpha phase into a wider closed beta later in 2026, expanding access to more players and platforms ahead of its 2027 launch. Sign-ups at playtest.stateofdecay.com are free, and the game will be playable on Xbox Series X|S, PC, cloud, Steam, and PlayStation 5 (with Game Pass and Xbox Play Anywhere). The testing emphasizes a larger shared open world, untethered multiplayer for up to four players, and a permadeath system, using community feedback to fine-tune combat, visuals, and progression before release.
State of Decay 3 could miss its day-one launch on Game Pass after Microsoft announced it would sell Undead Labs; the deal frees the studio from Xbox-controlling terms, meaning Game Pass inclusion would depend on a separate agreement with the new owner, whose identity is expected to be revealed later this summer. The game, developed since 2020, is scheduled for 2027 on PC, PS5, and Xbox Series X/S, occurring against a backdrop of wide Xbox layoffs and ongoing industry shifts.
After Xbox's restructuring, Undead Labs is being sold, and State of Decay 3 may no longer be contractually required to launch on Xbox Game Pass. The new owner could decide whether or not to release the game on Game Pass, making its day-one availability on the service uncertain despite the studio's ongoing operation.
Microsoft is restructuring: selling Undead Labs and Ninja Theory to unspecified buyers to finish State of Decay 3 and Hellblade, while Compulsion Games and Double Fine regain independence; 4,800 total layoffs across the company as Xbox recalibrates amid margins and a pivot toward AI investments and Game Pass.
Undead Labs has split from Xbox as part of Microsoft's broader studio reshuffle, with the developer being sold to new owners to finish and grow its projects, including State of Decay 3. Xbox says none of its first-party games are being canceled, and other studios like Ninja Theory are moving toward independence.
Microsoft‑owned Undead Labs, maker of State of Decay and State of Decay 3, is reportedly at risk of closure as part of a broad Xbox studio reset that could trigger hundreds of layoffs if buyers aren’t found; Undead Labs alone could see around 110 jobs cut, with additional cuts at other studios, with layoffs expected to begin in early July.
Despite trailers and a positive alpha, State of Decay 3 is at risk of cancellation as Microsoft reportedly seeks buyers for Undead Labs and contemplates more studio closures amid Xbox cost-cutting, with Game Pass deals paused and trust in upcoming Xbox announcements eroding.
A GamesBeat report claims Undead Labs, the Xbox game developer behind State of Decay 3, could be closed if a buyer isn’t found. The 17-year-old studio reportedly faces layoffs of up to about 110 employees, with Microsoft reportedly seeking a buyer to keep the studio alive. State of Decay 3 was announced in 2020 and, after a lengthy wait, had its first gameplay trailer shown at the 2026 Xbox Games Showcase; it’s slated for a 2027 release on Xbox, PlayStation 5, and PC. Microsoft has not commented on the rumors, which come amid wider industry chatter about studio layoffs.
At Xbox Games Showcase 2026, State of Decay 3 revealed a shared-world co-op survival experience built on Unreal Engine 5, featuring a much larger open world with up to three settlements, Enclaves NPCs, and a revamped combat system with extra melee options and distinct zombie types; maker-culture weapons like serrated machetes are part of the customization, while Plague Nests offer challenging, dynamic encounters. Alpha tests are underway with signups, and the game is targeting a 2027 release on Xbox Series X|S, PC (including Game Pass/Play Anywhere) and Steam/PlayStation 5.
State of Decay 2, the open-world zombie survival game, is receiving a major update called "Curveball" on September 18th, five years after its release. The update introduces unexpected and challenging events that can either benefit or hinder players. These curveballs can impact the community, settlement, and the undead in the game, adding a new level of chaos to the post-apocalyptic world.
State of Decay 2 has received a new update called "Heart Attack" which focuses on Plague Hearts and Infesting Hordes, making the game even more sim-like and immersive. Plague Hearts play an active part in the game and won't go back to being dormant, unleashing zombie hordes to infest sites and besiege your community. The update also includes quality-of-life fixes and bug fixes.