State of Decay 3 Confirmed Still Coming to Game Pass After Undead Labs Goes Independent

Undead Labs, the developer behind State of Decay 3, has officially completed its separation from Xbox and transitioned into an independent, employee-owned game development studio. The studio announced the news on its website, confirming that despite the organizational change, State of Decay 3 continues active development and will still arrive on Xbox Game Pass when it launches.

The game remains on track for a 2027 release window. Undead Labs stated that State of Decay 3 is currently in alpha and progressing toward closed beta by the end of this year. When it releases, the game will be available on PC, PlayStation, Xbox, and Xbox Game Pass.

Philip Holt, studio head of Undead Labs, said in a statement: "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." Holt added that the studio was "enormously grateful" for its long partnership with Xbox, noting that "Microsoft has been part of the State of Decay story from the very beginning, and we're proud of everything we've accomplished together."

The separation marks the first time since 2018, when Microsoft acquired Undead Labs, that the studio will operate independently. The partnership between the two companies had spanned more than 15 years, beginning with the original State of Decay's launch in 2013.

In State of Decay 3, players lead a community of survivors tasked with building settlements and defending against evolved zombies in a post-outbreak world. The game emphasizes player choice regarding where to settle, what to build, and whom to recruit. Permadeath remains always active, making each decision consequential to the community's survival.

Undead Labs is one of several studios that Microsoft has recently reorganized. Double Fine and Compulsion Games have similarly moved to new publishers, while other studios including Obsidian, Rare, and Playground Games have been reassigned within Microsoft's corporate structure.