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State of Decay studio Undead Labs goes independent after Xbox restructuring, but lays off "a significant number" of the team in doing so

Undead Labs, the developer of the State of Decay series, has become an independent, worker-owned studio after being acquired by Microsoft in 2018. This transition comes with significant layoffs, with the studio stating "a significant number" of staff are departing. Despite the restructuring, development on State of Decay 3 continues for PC, PlayStation, and Xbox, with a closed beta planned before the end of the year and a 2027 release target.

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