Undead Labs studio head Philip Holt touched on this in an interview with Sunny Games, and the good news is that it isn’t fixing what isn’t broken about the previous games. “So we talk about State of Decay 3 delivering on the systemic features from State of Decay 2 with a little bit more of the heart and soul of State of Decay 1. So maybe that’s a way to sort of think about how the franchise is evolving.”

Of course, the setup is different as well, with State of Decay 3 taking place “years into the future.” The de facto survivors are a “little bit more hardened” – whether that’s a good or bad thing, it will come in handy.

“The zombie menace is now presenting itself in a new way,” says Holt. “Curtains up on State of Decay 3, and your group of survivors has to really adapt to what they’re seeing in a more dangerous way. Much more dangerous way. So, yeah, the threats are real. They’re lethal, and they’re coming after you. So, that’s sort of the time setting.”

That would certainly feed into the rumored heavier narrative elements, especially if, like before, you must kill anyone who ends up infected. While alpha playtests for the title kick off next month and feature four-player co-op, base-building and combat, Undead Labs has touted a “much larger, truly shared open world” in the past.

How will that play out in the actual game? Time will tell, and there isn’t even a release date, but it’s shuffling along, not unlike the terrifyingly relentless undead. Stay tuned for more details in the meantime.

You may not remember it. Debuting at the Xbox Games Showcase in 2020, it showcased snow-covered environments and a lone human, who peers through the scope of their rifle to see a zombie deer. Pretty chilling stuff…except there wasn’t really any game at the time, according to Undead Labs head Philip Holt.

“So that trailer – there really wasn’t a game or game team when we were working on that trailer, like, it was so early,” he revealed in an interview with Sunny Games. “You know, the game was in a Word document. It was really the very beginnings of software.” At the time, Undead Labs had four to five people on the sequel. Shortly after the trailer, the studio confirmed that it was in early pre-production.

“The trailer was done by Blur, it was all pre-rendered, it represented, I think, a concept – our thoughts at the time of what might be cool to explore in State of Decay 3. And as we’ve had a chance to build a team and get going on the game, some of those elements I think are gonna persist in the game that we deliver, and some of those things are just, like…we’re not doing zombie animals.”

In case that wasn’t clear enough, Holt repeats it for those in the back. “No zombie deer. No zombie deer. No zombie deer.”

Thankfully, we won’t have to wait much longer to see what State of Decay 3 actually offers. Undead Labs announced alpha playtests starting in May, with sign-ups currently available. Participants can expect base-building, four-player co-op and plenty of violence. Those who don’t make the cut will have other opportunities to look forward to this year, though a release date remains pending.

“Listen, I’m not going to spoil the surprise for you, but I can say that it will feature 4-player co-op, some new base building and resource strategies, and a whole lot of combat.” You’ll need to register your Discord and email address to join, and while slots are limited, don’t worry. Fitzgerald said that it will have “plenty of other opportunities” throughout the year.

But that’s not all. As the months go on, Undead Labs will share “more updates” during development, ensuring players know “what’s new, what we’re learning,” and when they can have their chance at the alpha.

While announced in 2020, State of Decay 3 was actually in “early pre-production” at the time. Since it utilizes Unreal Engine 5, The Coalition would assist with their expertise, and rumors indicated “heavier” narrative elements and improved visual fidelity. Unfortunately, development stalled after allegations of workplace toxicity and sexism, with Microsoft (which owns the studio) blamed for not responding to complaints quickly enough.

Nevertheless, a new in-engine trailer debuted in 2024, and though it didn’t end up releasing last year as rumored, Undead Labs would stop content updates for State of Decay 2 to focus on the sequel. The developer would face an unknown number of layoffs last year, but despite all these hurdles, Xbox Game Studios head Craig Duncan says it’s “coming on really well.”

As always, stay tuned for more updates, including whether it will allegedly launch for PS5 alongside Xbox Series X/S and PC.

Forza Horizon 6

Forza Horizon 6 looks set to continue Playground Games’ mastery of open-world racing, building on one of the most consistently polished franchises in the genre. Set against the gorgeous backdrop of Japan, Forza Horizon 6 takes players across an even more dynamic map, deeper seasonal systems, and expanded social features – and of course, plenty of race events. With stunning visuals and an ever-growing roster of cars, Forza Horizon 6 feels like a dream of motorheads come true.

While he noted that he wasn’t yet allowed to talk about State of Decay 3 for now, he did note that development has been coming along quite well, and that he got the chance to play development builds “a bunch of times”.

“I think the [PR] in this room will murder me if I give you the answer to that,” he said. “So, here’s what I’ll say: I have done a number of visits to that studio in the last six to eight months. I have sat and played the game with the team a bunch of times. It’s coming on really well. We’re very excited about the franchise and its potential.”

“So I will certainly see a lot more of it in the coming year… is that a good answer to your question? [laughter]”

Undead Labs has been quiet about its work on State of Decay 3, and the last time we got to see anything about the third-person survival zombie game was an in-engine trailer all the way back in 2024. The studio itself has been the subject of controversy, however, with reports from back in 2022 indicating that the working conditions were rife with sexism and toxicity. This eventually led to several departures from the studio, which in turn had a notable impact on the game’s development progress. July 2025 also saw Undead Labs hit by lay-offs.

More recent rumours about State of Decay 3 have indicated that it will follow suit with other games under the Xbox Game Studios banner and will also come to PS5. Whether this means its PS5 version will launch on the same day as its PC and Xbox Series X/S release, or if this will happen at a later date, is currently unknown.

The State of Decay series originally started back in 2013 as a game on Xbox Live Arcade. The game is set in a town where the dead have risen, and revolves around their efforts to rally the local survivors to form a new community. Along with third-person combat, State of Decay also had an emphasis on survival mechanics, which meant that your community’s food and water were important things to track.

Its—2018’s State of Decay 2—upped the ante by introducing a host of different small-town settings of varying difficulty to choose from. The sandbox elements were also expanded on, along with the addition of 4-player co-op. While it also enjoyed post-launch support with new updates, including an updated re-release in 2020 dubbed the Juggernaut Edition, Undead Labs had announced back in 2024 that it was stopping development on more updates for State of Decay 2 to instead focus its teams on making State of Decay 3.

But what are they up to, and are their offerings going to be enough to either go toe to toe with the PS5, or, at the very least, gather enough momentum to attempt reversing the two consoles’ fading fortunes? We’re here to help answer those questions.

Join us as we take a look at what Xbox Game Studios is cooking up for a year that’s shaping up to be just as good as the one before it on the gaming front. It’s also a big year as the Xbox turns 25, and as such, there’s going to be a lot to be excited about if you’ve been a fan over the years. Let’s get started.

The Coalition

The studio behind the Gears of War franchise is all set to take the meta-narrative it has established over the years back to its roots, bringing back Marcus and Dom to the stage for a prequel that has fans excited to learn more about the gruff soldier’s turbulent relationship with his superiors and the events that led to the Locusts rising as a threat to his world in Gears of War: E-Day.

In a look back at the year it had at 2025, which featured studio heads discussing future projects, Mike Crump (who heads The Coalition) was pretty excited to assert that E-Day is the franchise’s “most ambitious title yet”, and confirmed that it was on track to release later this year with Polish studio People Can Fly joining the studio to lend a helping hand.

We’re going to be watching out with very sharp eyes for a release date announcement, and we’re sure that those among you who love Gears of War share our enthusiasm.

Compulsion Games

The South of Midnight developer has been basking in the success of the title, expressing gratitude for its excellent reception and confirming that a new project is already in the works. It has been stated that the lessons it picked up from developing South of Midnight have allowed it to grow and mature as a studio, and that this new project is going to reflect those learnings to be a game that is made to impress.

However, the studio is likely to focus on the multiplatform release for South of Midnight over this year, and its new project is likely not going to surface in 2026.

Double Fine

The studio has been relatively silent since the release of Keeper last year, and with little to no news about its next project surfacing in the months that followed, we can only guess that the team behind a very unique game is getting some well-deserved rest while they put down ideas for their next big thing on the drawing board.

That’s not to say we may not hear from the studio over the course of the year, though, and we’re hoping for more unique ideas, given its last project was a game with no dialogue that still managed to keep us glued to our screens.

Halo Studios

It looks like Halo is taking the Gears of War route this year, with Halo Studios all set to release Halo: Campaign Evolved sometime this year for the PS5, PC, and Xbox. A remake of a timeless classic, the new game is slated to bring several improvements to the original’s gameplay loop, such as the ability to hijack vehicles, weapon zooming, a redesign for the Warthog, up to 4-player online coop and 2-player couch coop, and so much more.

The visuals are also getting a leg up with Unreal Engine 5 powering the experience. The game’s iconic multiplayer being given a pass is a bummer, though. However, getting to see the campaign in a whole new light is something we’re definitely excited about. The bonus missions that act as a prequel are another nice touch that we’re curious about.

InXile Entertainment

We’ve been looking forward to Clockwork Revolution ever since this title was announced by inXile back in 2023. With a solid look into how the game works last year, and rumors that it could be slated for release this year, which must be taken with a pinch of salt, this is definitely one to watch out for.

If you’re unfamiliar with the game, it brings a very interesting premise with some time-travel shenanigans that pits you against a manipulative antagonist and her quest to consolidate power with a customizable protagonist. It’s quite impressive, and we hope the rumors that it’s making its way to our screens later this year are true, although we’re only carefully optimistic on that front.

Mojang Studios

There’s a lot to be excited about if you’re into Minecraft, as Mojang is bringing eight new baby farm mobs to the game, replete with visual changes that make them quite adorable indeed. However, the drop is still in its testing phase, and you might have to wait a while for an official release announcement, depending on how things progress.

However, that’s still good news, and we’ll be sure to have an update for you as soon as we can confirm any changes to the status quo.

Ninja Theory

The studio behind Hellblade is reportedly working on a new title that’s focused on being more interactive and action-oriented than its past offerings while sustaining the cinematic quality that it is now known for, as per Windows Central’s Jez Corden.

While there is speculation that the new title could be Hellblade 3, it could very well be a new IP. Either way, it’s likely that 2026 might be a quiet year for Ninja Theory, but that could very well change in the coming months.

Obsidian Entertainment

There are reportedly four new projects in development, along with speculations that a remake of Fallout: New Vegas in the vein of last year’s Oblivion is likely coming this year. However, that remains currently unconfirmed, so hopefully this month’s Xbox Direct may bring news on that front.

But if you happen to miss it, fret not, since we’re definitely going to have your back on that one!

Playground Games

The long-standing staple of Xbox Game Studios is going to be front and center at the Developer_Direct event, with both Fable and Forza Horizon 6 slated to make an appearance in what is shaping up to be a big year for the studio.

With no gameplay currently available for both titles, we’re quite certain that we’ll be getting quite a close look at what each of them is bringing to the table. While Fable is poised to be a reboot of the franchise, aimed at modernizing it for a new generation of players, Forza Horizon 6 is going to take you to Japan this time around, with a map that’s touted to be the biggest one yet in the franchise and a lot to look forward to in it.

We expect a release date announcement later this month, although that could take a little longer. Both games are currently slated for a 2026 release, though.

Rare

While the cancellation of Everwild is sure to have been a blow to the Sea of Thieves developer, the appointment of Lousie O’ Connor as the Chief of Staff for Xbox Game Studios might help with dealing with that loss and the layoffs that affected the studio.

It’s looking like a quiet year that’s going to be spent figuring out a way forward for the studio; however, we’re hopeful that we at least get a hint at what it aims to do next.

Turn 10 Studios

The studio behind Forza Motorsport is going to stop updates to its flagship title in order to help Playground Games with Forza Horizon 6. While that news is bittersweet, we’re still happy that the studio has managed to survive the turbulence of last year and come out on top.

Who knows, we might even get news of a new project a little later down the line. But for now, it’s looking like a relatively quiet year for this one.

Undead Labs

We’re still waiting on news about State of Decay 3 after Undead Labs posted that very cryptic teaser ahead of the 2025 edition of Summer Games Fest. However, things have been very quiet on that front, and the studio’s layoffs from last year have us a tad worried about the title’s current status.

We’re still holding out hope, however, and would be delighted to hear some good news at Developer_Direct later this month. Fingers crossed, we’d say.

World’s Edge

The studio’s job postings from last year fuelled a lot of speculation that it was taking a more hands-on approach to Age of Empires, and that an Unreal Engine-powered new addition to the franchise was in the works. And while nothing is confirmed at this moment, that could very well change later this year.

It would make sense for the studio to bring out a new title in its flagship franchise, and you can bet that we’d be very happy to hear about it over the course of this year. Once again, we’re going to advise cautious optimism, but one can always hope, right?

And that’s a wrap on all of the big releases and potential announcements from Xbox Game Studios as it gears up for a year that’s quite the landmark for the iconic console. We can’t wait to get our hands on all of the titles that are coming our way, and hope to join you as we enjoy a year of great games from these talented studios.

Of course, that’s not all, as it found an Undead Labs designer’s resume indicating that State of Decay 3 would also be coming to PS5. It’s unclear whether both games will launch for Sony’s platform or arrive later. However, with Microsoft releasing Reloaded on the same day for all three platforms, it’s very much possible.

There’s also the possibility that State of Decay 1 and 2 will come to PS5 at some point, if only to introduce the franchise to a new audience. Whether that’s possible given the unknown number of layoffs at Undead Labs remains to be seen.

Neither title has a release date, but Gears of War: E-Day will launch next year, while State of Decay 3 is rumored for the same. Stay tuned for more details in the coming months.

According to Kotaku’s Ethan Gach, the studio has also faced layoffs, though it’s “not yet clear how widespread.” He also mentioned that meetings among staff were “showing up on people’s calendars on a rolling basis,” so the situation is still very much developing.

How will this affect the development of State of Decay 3, which was announced in 2020? In 2022, a Kotaku report revealed issues with sexism and toxicity at the studio, which led to several departures, thus impacting development. A new in-engine trailer would debut at the Xbox Games Showcase 2024, and Undead Labs announced the end of content updates for State of Decay 2 to focus on the sequel.

Rumors indicated that it could launch in 2026 and potentially appear at this year’s Xbox showcase (which didn’t happen). An unannounced project is also reportedly in the works at the studio, so the layoffs could be related to the same. As always, stay tuned for further updates.

Metal Gear Solid Delta: Snake Eater

Metal Gear Solid Delta: Snake Eater set the internet ablaze with hype and anticipation when it was announced, and while some snippets of the gameplay have been revealed already – we are still waiting for sort of a launch trailer or a gameplay deep dive before we reach its imminent release date of August 28.

Among such titles may be Rare’s Everwild. While Microsoft Gaming CEO Phil Spencer recently said it’s making progress, Jez Corden of Windows Central noted how it’s seemingly “on track” according to the “most recent inquiries.” Microsoft’s producers also reportedly have “strong confidence” in it, which could mean an appearance at the showcase.

Then there’s State of Decay 3, which received a new in-engine trailer last year but no gameplay. Corden has heard that it could launch “as soon as 2026” (reaffirming a previous rumor) and suggested a potential “deeper look” sometime soon. Time will tell, though, so stay tuned for more details.

The Xbox Games Showcase airs on June 8th at 10 AM PDT, with The Outer Worlds 2 Direct to follow after. Obsidian Entertainment has already revealed many new details about the sequel, which could mean a release date announcement.