{
  "id": 9311391,
  "title": "State of Decay 3 studio Undead Labs lay off \"a significant number\" of \"exceptionally talented developers\" after gaining independence from Xbox",
  "url": "https://urgent.news/2026/09/23/state-of-decay-3-studio-undead-labs-lay-off-a-significant-number-of",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-09-23T09:45:00.000Z",
  "source": {
    "name": "Rock Paper Shotgun",
    "slug": "rock-paper-shotgun",
    "url": "https://www.rockpapershotgun.com/state-of-decay-3-studio-undead-labs-lay-off-a-significant-number-of-exceptionally-talented-developers-after-gaining-independence-from-xbox"
  },
  "original_language": "en",
  "account": "Undead Labs, the studio behind the State of Decay franchise, has undergone a significant change after securing independence from Xbox. The developer announced a layoff of a substantial number of staff as part of this transition. This comes after another round of mass layoffs at studios still under Microsoft's control.\n\nUndead Labs was one of five studios Microsoft planned to separate from during an initial round of cuts in July. In a LinkedIn post, the developers expressed their commitment to making the best games possible and earning the support of their players. However, they also mourned the loss of exceptionally talented colleagues who had devoted years to the franchise.\n\nThe studio noted that their departure from Xbox is not a reflection on the hard work and dedication of the developers. They have offered to connect other studios with the departing employees, who they described as individuals they would hire again. This move is part of a trend of layoffs in the games industry, with other independent studios like Double Fine and Compulsion Games also facing similar challenges.\n\nThe situation mirrors the difficulties faced by studios like Ninja Theory and Arkane, which have yet to secure a stable future following their independence from Xbox. As Undead Labs navigates this new phase, the company extends solidarity to all the affected developers, hoping they can quickly find new opportunities.",
  "summary": "Less than 24 hours after confirming they've managed to secure a future outside of Xbox by going independent , State of Decay 3 studio Undead Labs have announced that they've had to lay off \"a significant number\" of staff as part of that transition. The news follows a second round of mass layoffs this year at the studios still under Microsoft's thumb. Undead Labs were one of the five studios…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}