State of Decay 3
News, coverage and analysis tracking State of Decay 3 across the outlets.
Latest coverage
"We basically rewrote the entire State of Decay game": Undead Labs spent years trying to make State of Decay 3 into a full-blown zombie apocalypse MMO
Undead Labs spent years developing State of Decay 3 as a full-scale zombie apocalypse MMO, a vision initially held by founder Jeff Strain. After a significant pivot in late 2022, the studio rewrote the game to return to the scale of its predecessors. This pivot, coupled with Xbox cutting ties, led to layoffs but allowed the studio to secure new publishing support.
"It was a pretty harrowing three months" – Undead Labs head Philip Holt on what happened after Xbox cut the studio loose
Undead Labs CEO Philip Holt details the challenging three months following Xbox's divestment of the studio, which led to significant layoffs and a pivot to employee ownership. Despite the turmoil, the studio secured publishing funding for State of Decay 3, which is now employee-owned and aims for a 2027 release, focusing on player entertainment over investor demands.
Undead Labs boss "reluctant to share" number affected by layoffs: "I would hate to reduce the impact to those individuals to a number or statistic"
Undead Labs studio head Philip Holt expressed reluctance to share the exact number of employees affected by recent layoffs, emphasizing the human impact over statistics. The developer transitioned to an employee-owned studio following restructuring at Xbox, with Holt aiming for transparency during the difficult process. This move was part of broader Xbox layoffs impacting multiple studios.
Xbox Announces New Film, TV and Entertainment Division XP, Led by Former Minecraft Studio Head
Xbox has launched a new division called XP, focused on expanding its gaming franchises into film, television, merchandise, live events, and partnerships. Led by former Minecraft studio head Kayleen Walters, the division aims to reach audiences beyond the games themselves, leveraging recent successes like the Minecraft movie and the Fallout series.
State of Decay 3 Team is “Pretty Close to Finishing” Development, Says Studio Boss
Undead Labs studio boss Philip Holt stated that State of Decay 3 is nearing completion, with development picking up significantly in 2022-2023. He addressed changes made due to recent layoffs, assuring that scope is not dramatically impacted. Holt also discussed the studio's decision to accelerate full production due to concerns about Microsoft's acquisition strategy.
State of Decay 3 Layoffs Wil Cause Major Changes
Undead Labs, now an independent studio after leaving Xbox, has undergone layoffs impacting the development of State of Decay 3. Studio head Phillip Holt stated that while the game's overall scope remains, adjustments are necessary due to the workforce reduction. The title is currently in alpha, expected in 2027, and will launch on Game Pass.
Undead Labs speaks about its split from Xbox, revealing it has to "make some changes" to State of Decay 3 following layoffs
Undead Labs has revealed that it must make changes to State of Decay 3 following significant layoffs after regaining independence from Xbox. Studio head Phillip Holt stated that while the game is in alpha, the departure of colleagues necessitates adjustments, though not a dramatic scope reduction. The studio is now focused solely on creating the best possible game for its audience.
State Of Decay 3 Was Announced Early To Keep Undead Labs On Microsoft’s Radar
State of Decay 3 developer Undead Labs announced the game early in 2020 to keep the project on Microsoft's radar during an acquisition spree, according to studio boss Philip Holt. The studio has since become independent and employee-owned. Holt explained that the early announcement was a strategic move to prevent the studio from being overlooked amidst Microsoft's acquisitions of companies like Bethesda and Activision Blizzard.
Games industry investors are "sitting on the sidelines waiting for obvious slam dunks", says Undead Labs boss, with labour costs a key worry
Undead Labs studio boss Philip Holt believes investors are hesitant to fund game development projects unless they are 'obvious slam dunks,' citing high labor costs, particularly in expensive regions like Seattle, as a major concern. He also discussed the studio's successful management buyout from Microsoft and its implications for the future of State of Decay 3.
State of Decay 3 Announced Early Because Studio Head Was Worried About Being “Swallowed Up” by Xbox
Undead Labs announced State of Decay 3 early to prevent the studio from being "swallowed up" by Microsoft's acquisition strategy. Studio head Philip Holt revealed that the decision was made to ensure their work would be recognized before potential divestment or being absorbed into a larger organization. The studio has since left the Microsoft umbrella, and development continues.
State of Decay 3 Studio Head Says He Was “Irresponsibly Transparent” With Team During Xbox Layoffs
Undead Labs studio head Philip Holt described his
Unlead Labs studio head says they were 'irresponsibly transparent' in preparing staff for layoffs
Undead Labs studio head Philip Holt stated that the studio was 'irresponsibly transparent' in preparing staff for layoffs following its divestiture from Xbox Game Studios. While the exact number of job losses was not confirmed, Holt emphasized that employees were informed about the likelihood of job cuts, which he believes was a courtesy despite the painful nature of the event. The studio is still working on State of Decay 3, with a projected 2027 release.
State of Decay 3 Was Revealed Early Partly Because of the Studio Boss' Anxiety Around Xbox's Plans
Undead Labs boss Philip Holt revealed that State of Decay 3 was announced early due to his own anxiety surrounding Xbox's future plans for the studio. This early reveal was intended to preemptively address potential concerns.
MMO Week in Review: Destiny 2’s revival, Aion 2’s stress test
This week's MMO news covers Destiny 2's revival with unvaulted content, Aion 2's stress test, and Ultima Online's 29th anniversary. Dune Awakening launched on consoles, Elder Scrolls Online discussed experimental features, and Microsoft continued layoffs. World of Warcraft Forever is impressing players, while other news includes The Division 2, Marathon, Warframe, and various other MMO updates and discussions.
Betawatch: World of Warcraft Forever gets the beta explosion as Aion 2 cracks its doors open a bit
The beta for World of Warcraft Forever has launched with high player numbers, while Aion 2 has opened its doors for testing. The article also provides updates on State of Decay 3's development under an indie Undead Labs and Guild Wars 2's upcoming WvW map test. It serves as a weekly roundup of MMOs in various testing phases, including open betas, closed betas, and early access.
Evening Reading - September 24, 2026
Shacknews' Evening Reading for September 24, 2026, rounds up various gaming news items including updates on Dragon Quest 11, Total War: Warhammer 3, Marathon, and Tetris Effect: Mixed Realities. The digest also touches on changes for Quake Champions and Counter-Strike 2, and mentions State of Decay 3's development.
State of Decay 3 Studio Was Going to Be Acquired by Splash Damage Before Deal Fell Through – Rumor
Xbox is reportedly divesting four studios, including Undead Labs, developer of State of Decay 3. A rumored acquisition of Undead Labs by Splash Damage fell through, as did potential deals for Ninja Theory. These moves are part of a larger business "reset" by Xbox, which has also involved significant layoffs and studio reorganizations.
Xbox’s New Mythic Achievements Take 15 Seconds To Tell You “Good Job”
Xbox is introducing 'Mythic Achievements,' a new tier similar to PlayStation's platinum trophies, which will trigger a 15-second animation upon unlocking. These achievements are worth zero Gamerscore and are tracked separately. The rollout occurs during a difficult period for Xbox, marked by significant layoffs across Xbox Game Studios and restructuring for studios like Ninja Theory and Undead Labs.
Undead Labs confirms indie status, developer layoffs, and continued State of Decay 3 development
Undead Labs has officially separated from Microsoft and is now an independent, employee-owned studio. Development of State of Decay 3 continues, with the game slated for a 2027 release on Xbox, Game Pass, PlayStation 5, and PC. The transition to independence unfortunately involved an undisclosed number of layoffs.
Xbox Cuts Several Studios & Staff in Restructuring
Xbox is undergoing a significant restructuring, involving the elimination of 268 roles and the reorganization of several first-party studios. Activision will now oversee the next Halo game, while Playground Games and Turn 10 Studios will merge. Bethesda is absorbing Obsidian Entertainment, and Ninja Theory faces a proposed closure. These changes aim to reduce organizational complexity and concentrate resources on key franchises.
