State Of Decay 3 Lives On, And Is Still Coming To Game Pass
Undead Labs, the developer behind the State of Decay franchise, has officially become an independent, employee-owned studio following its separation from Xbox. The transition marks the first time the Seattle-based developer has operated independently since 2018.
The separation occurred during a broader round of Xbox layoffs and studio reorganizations, but Undead Labs survived the cuts and secured its future through the new independent structure. Studio Head Philip Holt expressed gratitude for the years spent as part of Xbox, while emphasizing the studio’s commitment to independence.
State of Decay 3 development remains actively underway and unaffected by the studio’s separation. The game is currently in its alpha phase, with the team working toward a closed beta launch by the end of 2026. The full release is targeted for 2027 across PC, PlayStation, Xbox, and Xbox Game Pass, marking the franchise’s expansion to PlayStation platforms.
The announcement reaffirms Microsoft’s commitment to supporting the game on Game Pass at day-one launch, despite Undead Labs’ transition to independence. The studio emphasized that independence brings it closer to its community and allows it to focus on creating the best possible games while earning continued player support.
Sources
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