State of Decay Developer Undead Labs Responds to ‘Significant’ Layoffs Following Independence from Xbox
Undead Labs, the Seattle-based developer of State of Decay 3, has confirmed it underwent significant layoffs following its transition to independence from Xbox. The studio recently completed its exit from the Xbox umbrella and now operates as an independent company.
Despite the job losses, studio head Philip Holt assured fans that development will not be disrupted. “State of Decay 3 remains in active development, and these changes will not impact the game’s launch,” Holt stated. “The team is continuing its work on schedule, and we remain committed to delivering the experience our community has been waiting for.” The studio expressed gratitude to all contributors to the project.
The move to independence was announced several months earlier when Undead Labs confirmed it was transitioning out of Xbox. The timing of the layoffs coincides with broader job losses across Xbox, though Undead Labs itself had previously managed to separate from the publisher. State of Decay 3 is confirmed to be coming to PlayStation 5 as part of the studio’s expanded platform strategy following independence.