Undead Labs Goes Independent After Xbox Separation, Confirms State of Decay 3 Is Still In Development
Undead Labs has confirmed that State of Decay 3 is still in development after the studio separated from Xbox, becoming an independent, employee-owned developer.
Undead Labs, the developer behind State of Decay, has announced that it has become an independent, employee-owned studio after separating from Xbox. In a September 22 blog post, the studio confirmed that State of Decay 3 is still in development and currently in alpha. The game is set to enter a closed beta by the end of 2026 and launch in 2027 on Xbox, Game Pass, PC, and PlayStation.
Studio Head Phillip Holt expressed excitement about the independence, stating that it allows the team to focus on creating the best games possible and building on the trust of their player community. While acknowledging the studio's years of success under Xbox, Holt also expressed gratitude for the relationship, noting that Microsoft has been a part of the State of Decay story since its inception.
The announcement has been met with largely positive reactions from fans, who appreciate the studio's decision to remain employee-owned and the fact that the game will still be available on Game Pass.
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