Undead Labs
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Jobs roundup: September 2026 | Asmodee appoints Brian Trunk as senior vice president, Route to Market for the Americas
This article rounds up recent appointments and transitions within the games industry. Notable moves include Brian Trunk joining Asmodee as senior vice president, David Scarborough becoming senior manager of EMEA communications at Blizzard Entertainment, and Ilari Kuittinen stepping down as managing director of Housemarque after 31 years. Several other individuals have taken on new roles at companies like CD Projekt Red, Epic Games, and Activision Blizzard.
Multiplayer survivalbox State of Decay 3 forges ahead with beta plans after July layoffs
Undead Labs announced that State of Decay 3 will undergo beta playtests before the end of the year, following earlier alpha tests. This indicates the game is progressing despite recent layoffs at the studio in July. The multiplayer survival game is slated for a 2027 release.
State of Decay 3 Closed Beta Scheduled for Later This Year
Undead Labs has announced that State of Decay 3 will enter a closed beta later this year, following its closed alpha phase. Creative director Kevin Patzelt confirmed that the beta will include improvements to combat, cosmetics, movement, and visual fidelity based on alpha feedback. The game is set to launch in 2027 for Xbox Series X/S, PlayStation 5, and PC, featuring survival mechanics, base building, and untethered multiplayer.
Following Xbox Breakup, State Of Decay 3 Will Return With A Closed Beta Playtest
Undead Labs announced that State of Decay 3 will begin a closed beta playtest before the end of 2026, with more players gaining access over time. The beta aims to stress-test the game's large map and untethered multiplayer, building on lessons learned from a previous alpha test. The game is currently slated for a 2027 release on PC, PlayStation 5, and Xbox Series X|S.
State of Decay 3 lives on after studio's separation from Xbox, with a closed beta promised for this year
Undead Labs has announced that a closed beta for State of Decay 3 will begin in 2026, following the studio's separation from Xbox. The game, which is set to launch in 2027 on PC, PlayStation 5, and Xbox Series X/S, will also feature expanded alpha testing throughout this year. This news comes after Microsoft's recent layoffs and restructuring within its gaming division, which included the sale of Undead Labs.
State of Decay 3: Closed Beta Playtests Will Open the Game to Even More Players This Year
Undead Labs is expanding closed beta playtests for State of Decay 3 to more players and platforms throughout 2026, ahead of its 2027 launch. The game will be available on Xbox Series X|S, PC, cloud, Steam, and PlayStation 5, and will be included with Game Pass. These playtests aim to stress-test and fine-tune the game's systems, including its untethered multiplayer and largest map to date.
Hundreds of union workers rally across North America to protest Xbox layoffs
Hundreds of unionized video game workers rallied across North America to protest recent layoffs at Microsoft's Xbox division. Members of the Communications Workers of America (CWA) and allies gathered to call out corporate greed and demand fair contracts, citing multiple rounds of job cuts impacting studios like Obsidian, id Software, and ZeniMax Online Studios. Xbox CEO Asha Sharma confirmed 3,200 job eliminations, with 1,600 immediate layoffs, leading to legal action from the CWA against Microsoft for alleged mishandling of the cuts.
Compulsion Games becomes publisher of South of Midnight on Steam, suggesting departure from Xbox amid major restructuring is now complete
Compulsion Games is now listed as the publisher of South of Midnight on Steam, indicating its complete separation from Xbox following recent restructuring. The studio, which also regained rights to its previous titles Contrast and We Happy Few, is now operating as an independent entity. South of Midnight, released in spring 2025, received praise for its visuals and music integration but was criticized for shallow gameplay.
200 million new Xbox players weren't enough to offset falling revenue in its latest fiscal year, CEO says: "We…
Despite attracting over 200 million new players to Xbox and its games in fiscal year 2026, Microsoft's gaming division experienced a decline in revenue. CEO Asha Sharma acknowledged the gap between audience growth and business performance, stating that investments in player value are expected to drive growth by the end of fiscal year 2027. The company also underwent significant restructuring, including layoffs and spinning out several first-party studios.
Xbox revenue plunges $1.7bn, with hardware dropping 29% YoY
Microsoft's latest financial results reveal a significant 7% year-on-year decline in Xbox revenue for the full year and 10% in the fourth quarter, primarily driven by a 29% drop in hardware sales. Despite growth in Game Pass, content and services revenue also fell by 10%. The company announced widespread layoffs affecting 4,800 roles, including 1,600 at Xbox, as part of a restructuring aimed at long-term growth, with several studios transitioning to new management or becoming independent.
“Necessary Decisions” Are Being Made to Reset Xbox for Long-Term Growth, Says Microsoft CEO
Microsoft CEO Satya Nadella stated that "necessary decisions" are being made to reset Xbox for long-term growth, citing a 10 percent revenue decline in the last quarter. The company plans to diversify its business across subscriptions, ads, and digital stores, and expand to new ecosystems. This strategy follows recent layoffs and the divestment of four studios: Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs.
Xbox Revenue Fell by 10 Percent in Last Quarter
Microsoft's Xbox division experienced a 10 percent revenue decrease last quarter, coinciding with significant layoffs across the division. While overall Microsoft revenue increased by 18 percent due to cloud services like Azure, the Xbox content and services segment, along with the Windows OEM and Devices division, saw declines. As part of restructuring, Xbox divested four studios: Compulsion Games, Double Fine Productions, Undead Labs, and Ninja Theory.
Double Fine Productions suffers layoffs weeks after going independent
Double Fine Productions has laid off 23 employees, nearly 25% of its workforce, just weeks after becoming an independent studio following its separation from Xbox. The studio stated the layoffs were necessary for its survival and to adjust to its new size as an independent entity. This follows Xbox's broader restructuring efforts which have also impacted other studios.
Double Fine Announces Layoffs For 23 Employees Following Xbox Split
Double Fine Productions, developer of Psychonauts, has laid off 23 employees following its separation from Xbox. Studio founder Tim Schafer stated the move was necessary for the studio's sustainability as an independent company. Xbox confirmed the return of intellectual property and runway for future games to Double Fine and other divested studios like Compulsion Games, Ninja Theory, and Undead Labs.
Fallout 3 and New Vegas Remasters are a good start, but before Fallout 5 Bethesda could be doing so much more
The announcement of Fallout 3 and New Vegas remasters highlights the long neglect of the Fallout series, with Fallout 5 not expected for many years. While new content for Fallout 76 and a potential Obsidian project are on the horizon, the article argues that Xbox and Bethesda could leverage other studios within their ecosystem to develop more Fallout titles and better manage the franchise's potential.
Another former Xbox studio is "independently owned, again" after Microsoft shut it down in 2024
Alpha Dog Games, a studio previously shut down by Microsoft in 2024, has reemerged as an independently owned entity. Studio founder Shawn Woods updated his LinkedIn profile to reflect the change, indicating the studio regained independence in May 2025. This follows a trend of studios becoming independent after Microsoft's recent closures and layoffs.
Is Game Pass Still the Right Strategy for Xbox?
This article analyzes the current state and future strategy of Xbox Game Pass, questioning its sustainability and impact on game value. Despite initial excitement and acquisitions to bolster its library, internal sentiment appears negative, with reports of studios detesting the service and subscriber growth falling short of projections. While Game Pass remains a key, albeit paradoxical, component of Xbox's offerings, its future is uncertain amidst internal challenges and a need for renewed growth.
Compulsion Games seeks new partnerships following spin-out from from Xbox
Compulsion Games has announced its return to independent development after being spun out from Xbox. The studio, known for South of Midnight, is now seeking new partnerships to leverage its team's talent and creativity. Compulsion Games retains the rights to its previous titles, including Contrast, We Happy Few, and South of Midnight.
Following Xbox split, South of Midnight devs Compulsion are looking for work as a co-development or support studio
Following layoffs from Xbox, Compulsion Games, the studio behind South of Midnight and We Happy Few, is now operating as an independent developer. The company is actively seeking co-development or support roles with other studios to secure funding and leverage its team's talent while working on its next original game.
South of Midnight Developer is Looking for Studios to Collaborate With
Compulsion Games, now an independent studio after being released from Xbox, is seeking collaboration partners for its next project. The studio, which developed the BAFTA and Peabody Award-winning game South of Midnight, aims to leverage its talent and expertise while securing funding. This announcement follows recent layoffs at Xbox and the independent transitions of other former Xbox studios like Undead Labs, Double Fine Productions, and Ninja Theory.
