State Of Decay Studio Undead Labs Reportedly At Risk Of Closure
Undead Labs, the 17-year-old developer behind State of Decay 3, is reportedly at risk of closure as part of Microsoft’s Xbox gaming division restructuring. According to GamesBeat and Windows Central, the studio is among several Microsoft-owned developers facing potential shutdown if a buyer cannot be found before the end of Microsoft’s fiscal year on June 30. Should no external buyer emerge, approximately 110 jobs could be lost.
The announcement is particularly striking given that State of Decay 3 has received significant promotional support from Xbox, including recent trailers at industry showcases. The survival management simulation, in which players build settlements and defend against zombie hordes, is reportedly in advanced development stages. However, the game’s release remains uncertain should the studio close before completion.
Undead Labs joins other major first-party studios rumored to be seeking alternative ownership or investment, including Double Fine, Compulsion Games, and Ninja Theory. The wider restructuring underscores ongoing uncertainty within the Xbox ecosystem regarding both the future of its studios and multiple anticipated first-party titles.
Sources
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