Latest clearly sourced MAXGG coverage about Undead Labs.
Undead Labs, the studio behind State of Decay, has transitioned to self-ownership with employees becoming shareholders, following a period of layoffs and internal restructuring.
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According to a new rumor, State of Decay 3 developer Undead Labs nearly faced an acquisition by Splash Damage before the agreement fell through.
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Undead Labs has split from Xbox as part of a broader reorganization, becoming an employee-led independent studio. The transition included significant staff reductions, though State of Decay 3 remains in development.
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The State of Decay developer has laid off a substantial portion of staff as it becomes fully independent, following Microsoft's broader Xbox studio restructuring.
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State of Decay 3 developer Undead Labs has completed its split from Xbox and is now operating as an employee-owned independent studio. Development of State of Decay 3 continues on schedule for a 2027 launch.
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Undead Labs has officially separated from Xbox and become an independent, employee-owned studio. State of Decay 3 remains in active development and will still launch on Game Pass in 2027 across PC, PlayStation, and Xbox.
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Undead Labs has separated from Xbox as an independent studio but faced significant job losses on the same day. State of Decay 3 remains in development and targets a 2027 PS5 release, with a closed beta planned before the end of 2026.
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Microsoft has announced a major restructuring of its Xbox division, cutting approximately 3,200 jobs and divesting several first-party game studios due to weak unit economics and revenue declines.
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Undead Labs has announced a closed beta for State of Decay 3 ahead of its 2027 release on PC, PS5, and Xbox Series X/S, following the developer's recent separation from Xbox.
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