Undead Labs is now fully independent and employee-owned after its split from Xbox. However, it also announced “significant” layoffs on LinkedIn, creating concern for the development of State of Decay 3. Studio head Philip Holt has since reaffirmed to IGN that the title remains in “active development.”
“State of Decay 3 remains in active development, and these changes will not impact the game’s launch. The team is continuing its work on schedule, and we remain committed to delivering the experience our community has been waiting for. We’re grateful to everyone who has contributed to the game.”
Rumors circulated last year about layoffs during the same period Xbox shut down The Initiative and projects like Perfect Dark and Rare’s Everwild. The studio’s current headcount remains unknown.
Announced in 2020 with little more than a cinematic trailer (with Holt later confirming it was only a Word document at the time), State of Decay 3 has been a long time coming. It’s developed on Unreal Engine 5 and even tapped Gears of War developer The Coalition for assistance. However, allegations of a toxic work environment and sexism seemingly derailed work for a long time.
After last year’s alleged layoffs, State of Decay 3 entered closed alpha last May, with participants trying out the base-building, co-op and other new features. It’s currently targeting 2027 for Xbox Series X/S, PS5, and PC, with a closed beta going live later this year. As for the studio’s “future plans,” these will be shared at a “later date,” so stay tuned for more updates.
On the bright side, at least it’s still coming to Game Pass after previous reports indicated otherwise.
