State Of Decay And Hellblade Devs Are Being Sold, But Buyers Remain Mysterious For Now

Microsoft announced it is divesting two major studios as part of a significant Xbox restructuring: Undead Labs (developer of State of Decay 3) and Ninja Theory (working on Hellblade Senua). The announcement accompanied news of mass layoffs affecting 3,200 Xbox staff. While Microsoft confirmed both studios have secured new ownership with continued funding to complete their respective projects, the mystery buyers remain unidentified.

State of Decay 3, one of Xbox’s most wishlisted games on Steam, has been in extended development. Hellblade Senua is a newly announced action title revealed at the Xbox Games Showcase in June. Funding commitments ensure both games will be completed under their new owners.

However, the divestiture creates significant uncertainty regarding game availability. State of Decay 3 was previously announced as a day-one Xbox Game Pass title when it was a first-party Microsoft project. Under new ownership, the game will no longer be contractually required to launch on Game Pass, representing a substantial shift in its planned distribution strategy.

Compulsion Games and Double Fine also became independent studios as part of the same restructuring. These moves represent a major strategic pivot for Xbox, though the long-term implications for these titles and their new owners remain unclear until the buyers are publicly identified.

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