State of decay developer undead labs announces layoffs as it goes independent – Breaking News & Latest Updates 2026
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Xbox’s ‘reset’: all the news about Microsoft’s layoffs and studio changes

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The Verge
State of Decay developer Undead Labs announces layoffs as it goes independent.

While Undead Labs is avoiding closing as Xbox’s assortment of developers continues to shrink, the studio announced on LinkedIn that “Unfortunately, today we are also saying goodbye to a significant number of our colleagues. It’s difficult to reach this moment knowing that not everyone who helped get us here gets to make the rest of the journey with us.”

Its blog post earlier said that State of Decay 3 development “remains actively underway,” targeting a 2027 release on Xbox, Game Pass, PC, and PlayStation.

Xbox is barely Xbox anymore

Andrew Webster
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