Undead Labs confirms it is now an "employee-owned studio"

Undead Labs has transitioned from being a subsidiary studio to an employee-owned game development entity. Following an update to Microsoft's ongoing restructuring, the studio confirmed its separation from the Xbox platform. This change was announced by studio head Philip Holt, who expressed gratitude for their time with Xbox and highlighted the focus on creating exceptional games and maintaining the support of their player community.

Despite the transition, development of State of Decay 3 is ongoing, with the game set to release in 2027 across Xbox, Game Pass, PC, and PlayStation platforms, with a closed beta scheduled for the end of the year. This move marks a significant shift in the studio's structure, reflecting a broader corporate strategy to align studios more closely with their respective communities.