Undead Labs
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This Week In Games Was Bad, But Next Week May Be Worse
The gaming industry experienced a particularly bleak week with multiple significant layoffs, studio closures, and price increases. Microsoft's Xbox division saw widespread job cuts, while Sony announced plans to end physical disc production for PlayStation games by 2028. These events, coupled with delays and the ongoing impact of AI discussions, paint a grim picture for the industry's immediate future.
Dishonored developer Arkane is reportedly one of five studios Microsoft is targeting to close down as part of its big 'reset'
Microsoft is reportedly considering closing down Arkane Studios, the developer of the Dishonored series and Marvel's Blade, as part of a major 'reset' plan for its Xbox division. Arkane is among five studios, including Compulsion Games, Ninja Theory, Double Fine, and Undead Labs, whose futures are uncertain. The company is also planning significant layoffs, potentially affecting over 1,000 jobs, with cost-cutting measures impacting various parts of the division.
Xbox weighs closing Arkane Studios while pulling out of IO Interactive's next project
Xbox is reportedly considering closing Arkane Studios and cancelling Marvel's Blade due to development concerns. Additionally, Xbox has withdrawn funding and publishing support for IO Interactive's new fantasy project, codenamed 'Project Fantasy,' forcing the Danish studio to seek alternative arrangements. These moves are part of a broader restructuring by Xbox to refocus investments on its highest-priority titles and IPs.
Kojima Productions’ OD Remains Safe Ahead of Xbox Reset – Rumor
Despite recent rumors of potential studio closures and layoffs at Xbox, Kojima Productions' upcoming horror title OD is reportedly safe. This comes as other studios like Ninja Theory, Undead Labs, Compulsion Games, Double Fine Productions, and Arkane Lyon face uncertain futures. OD remains Kojima Productions' primary focus for 2026.
Marvel’s Blade Could Be Cancelled as Xbox Considers Shutting Down Arkane Studios – Rumor
Reports suggest that Xbox is considering cancelling Marvel's Blade and potentially closing Arkane Studios in Lyon due to budget concerns and impending layoffs. Other studios like Double Fine, Compulsion Games, Ninja Theory, and Undead Labs are also reportedly on the chopping block, with potential layoffs extending to id Software and Blizzard Entertainment.
Microsoft reportedly add Arkane and their Blade game to the potential shuttering pile
Microsoft is reportedly considering shutting down Arkane Studios and canceling the Blade game, with potential layoffs affecting up to 1000 employees across Xbox. Other studios like Ninja Theory and Undead Labs are also rumored to be on the chopping block. The company is also reportedly divesting its partnership with IO Interactive on Project Fantasy.
Rumor: Microsoft’s next layoffs are poised to hit Blizzard, Bethsoft, and Undead Labs
Rumors suggest Microsoft is planning significant layoffs across several of its gaming studios, including Undead Labs, Blizzard Entertainment, and Bethesda Softworks. These cuts are reportedly the largest for Xbox and come as the company evaluates its recent Activision Blizzard acquisition. Unionized workers at Xbox are reportedly organizing to negotiate over potential job losses.
Rykte: State of Decay 3-utvecklaren Undead Labs riskerar också stängning
Recent reports suggest that Microsoft may be considering closing or selling Undead Labs, the developer of the highly anticipated State of Decay 3. This follows unconfirmed information that Ninja Theory, Double Fine, and Compulsion Games are also facing potential closures or sales. Microsoft is reportedly planning to make these decisions in early July.
Report: Xbox considering sale or closure of Arkane, other studios, as layoffs loom
A report suggests Xbox is considering selling or closing several studios, including Arkane Studios, Double Fine, Compulsion Games, Ninja Theory, and Undead Labs, as part of a major 'reset' under new CEO Asha Sharma. The upcoming game 'Blade' is reportedly over budget and may be canceled. Mass layoffs affecting over a thousand roles are also anticipated across Xbox in early July, following the Activision Blizzard acquisition.
State of Decay studio Undead Labs potentially up for closure, sources claim, with Bethesda and Blizzard also facing layoffs
Microsoft is reportedly planning significant layoffs across its gaming division, potentially including the closure of Undead Labs, the studio behind State of Decay. Bethesda and Blizzard Entertainment are also expected to face substantial job cuts as part of a company-wide "reset." Union workers are negotiating with management to protect jobs or secure severance packages amid these widespread reductions.
Xbox cuts rumoured to be the ‘largest single layoff event’ in gaming history
Reports suggest that Xbox is planning a significant round of layoffs, potentially the largest in gaming history, impacting multiple studios including Undead Labs, Ninja Theory, Compulsion Games, and Double Fine. Game designer George Broussard claims to have inside information indicating widespread studio closures and job cuts across the Xbox division following the end of its fiscal year.
State of Decay 3, Which Was at Xbox Games Showcase and Is Currently Running Playtests, Reportedly at Risk of Cancellation as Buyer Sought for Undead Labs
Reports suggest that State of Decay 3 and its developer Undead Labs are at risk of cancellation as part of impending layoffs at Xbox. There are concerns that a buyer is being sought for Undead Labs.
Xbox is reportedly considering closing State of Decay developer Undead Labs
Microsoft is reportedly considering closing several Xbox-owned studios, including Undead Labs, the developer of the State of Decay series. Other studios at risk include Double Fine, Compulsion Games, and Ninja Theory, as part of a broader 'reset' plan for the Xbox brand aimed at improving profitability. These potential closures could result in hundreds of job losses, with layoffs expected to begin in early July.
70+ minuters gameplay från State of Decay 3
A gameplay video exceeding 70 minutes for State of Decay 3 has been released by YouTuber Brian Menard, offering a look at the survival gameplay. The game is slated for a 2027 release on PlayStation 5, Xbox Series X/S, and PC, though the footage is from an early alpha build.
State of Decay 3 Gets 72-Minute Gameplay Showcase of Early Alpha Build
Undead Labs has released a nearly 72-minute gameplay showcase of an early alpha build for State of Decay 3. The footage highlights survival mechanics, resource scavenging, and zombie combat, demonstrating a more polished experience than its predecessor. The game is slated for a 2027 release on PC, PlayStation 5, and Xbox Series X/S.
Xbox Reportedly Planning Big Layoffs For Next Month
Microsoft's Xbox division is reportedly planning significant layoffs after June 30, following statements from new CEO Asha Sharma about the business's financial health. Sharma cited declining revenue, increased hardware component costs, and strategic overextension as reasons for the impending cuts. These layoffs come after a period of studio expansion under previous leadership.
Multiplayer zombie survivalbox State of Decay 3 announces a 2027 release window in new gameplay trailer
Undead Labs has announced that State of Decay 3 is targeting a 2027 release window for Xbox, PlayStation 5, and PC. A new gameplay trailer showcased features like plague nests, improved combat, and a larger map. Alpha testing will be expanded later, followed by beta testing.
State of Decay 3 playtests will expand this year ahead of 2027 release: "We are dying for players to come…
State of Decay 3 is slated for a 2027 release, with developer Undead Labs planning to expand alpha and beta playtests throughout the year. Creative director Kevin Patzelt expressed enthusiasm for player feedback, encouraging sign-ups on the official playtest website. The game will be available on Xbox, PC, and PlayStation 5.
State of Decay 3 dev wanted the first gameplay trailer to show off how much higher the game's quality is, but promises deeper systems are still there
Undead Labs showcased the first gameplay trailer for State of Decay 3, confirming all footage was captured in-engine and highlighting improved visual quality. Creative director Kevin Patzelt stated the game is built in Unreal Engine 5 and will feature deeper systems like settlement building and co-op, with a target release in 2027 for PC, PlayStation 5, and Xbox Series X/S.
Xbox Games Showcase 2026: Every Major Reveal, Trailer and Release Date – Part 1 | Invision Game Community
The Xbox Games Showcase 2026 featured numerous reveals, including gameplay for Gears of War: E-Day, Fable, and State of Decay 3, alongside release dates for Call of Duty: Modern Warfare 4 and Halo: Campaign Evolved. Microsoft also celebrated 25 years of Xbox with special edition hardware and showcased new titles like Spyro: A Realm Beyond and Senua.
