State of Decay Developer Undead Labs Confirms 'Significant' Layoffs Following Independence from Xbox

Undead Labs, the developer behind the State of Decay series, has announced significant layoffs following its independence from Xbox. The studio shared the news on LinkedIn, confirming that a substantial number of staff members are leaving the company. This move comes as part of Microsoft's broader restructuring efforts for the Xbox brand, which was announced earlier this summer.

In their statement, Undead Labs expressed regret over parting ways with a considerable portion of their team. The studio acknowledged the loss of talented developers who have dedicated years to the State of Decay franchise, emphasizing that their contributions remain integral to the game and its development. Despite the layoffs, Undead Labs reassured fans that the future of State of Decay 3 remains unaffected, with the game set to release in 2027.

Undead Labs' head, Philip Holt, highlighted the positive aspects of the studio's independence, stating that it brings them closer to their community and allows them to focus on creating the best games possible. The company expressed its commitment to honoring the trust placed in them by millions of players over the years. Holt also noted the studio's dedication to continuing this legacy as an independent entity.

The layoffs have sparked speculation about potential buyers for Undead Labs, with Ninja Theory facing closure after negotiations for a potential sale fell through. However, Undead Labs has not yet disclosed whether any offers have been made or received, leaving details of the situation uncertain at this point.