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.

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.

After cutting three percent of its workforce worldwide in May this year, a new wave of layoffs has hit the company. The Seattle Times reported roughly 9,100 employees affected across all of Microsoft, with the overall impact on its Gaming Division unknown. Bloomberg did note that King, based in Stockholm, and ZeniMax Media’s European offices were affected (with the former losing about 200 employees). However, at the time, the full scale of the cuts was unknown in the United States.

As time passed, it became clear that this wasn’t just a series of layoffs but an all-out bloodbath. Everwild, Perfect Dark and ZeniMax Online Studios’ next MMO, codenamed Blackbird, have reportedly been cancelled. The Initiative has been closed. Rare will allegedly undergo restructuring and see layoffs. Undead Labs, currently working on State of Decay 3, has reportedly faced layoffs (though how extensive is unknown). Turn 10 Studios saw over 70 layoffs, according to The Verge, effectively reducing its staff by almost 50 percent (which is apparently enough to keep Forza Motorsport going).

At the time of writing, it’s unknown whether ZeniMax Online Studios will see layoffs because the overall handling of the process has been, to put it simply, embarrassing. Bloomberg’s Jason Schreier noted that staff who worked on Blackbird were locked out of their Slack accounts without any warning from HR. Leadership and HR have also yet to confirm their job statuses, though they can still use their official work emails and Microsoft Teams (and no, I won’t make the joke).

The way it’s been handled is unequivocally horrendous, but it’s not just in the United States. King’s London and Berlin offices, alongside their remote workers, have also allegedly been hit, according to MobileGamer.biz. Though they noted how it wasn’t very surprising, the process has still “been handled very poorly.”

Back in the US, not even those working on the Call of Duty franchise are safe. Insider Gaming reported layoffs to Sledgehammer Games and Raven Software, with the actual number yet to be known. And yes, Raven is working on Call of Duty: Black Ops 7 alongside Treyarch. High Moon Studios, which serves as a support studio on Call of Duty: Warzone, has also seen layoffs. Halo Studios is also reportedly seeing layoffs – one alleged employee worked on Halo Infinite for the past four years to turn around, quote, “that burning dumpster of a live service.” There aren’t any reports about South of Midnight developer Compulsion Games, but one former employee recently posted on LinkedIn about seeking a new role, having worked at the studio since June 2024.

You’re probably wondering at this point, “Is that all?” Well, no. According to The Verge, the Xbox user research team has also been “hit hard.” For those unaware, it’s a team that “focuses on ensuring quality across Xbox games, the platform, and developer tools.” Windows Central reports that QA in Activision and Blizzard have also been affected, alongside marketing and sales teams. If that isn’t enough, Xbox’s head of family and child safety is also gone.

If we’re talking about senior positions, ZeniMax Online Studios president Matt Firor is leaving after over 18 years, while sources told VGC that Gregg Mayles and Louise O’Connor will be leaving Rare. Mayles has spent over 35 years at the studio and is best known for Banjo-Kazooie and Sea of Thieves (and was also directing Everwild after the reported 2021 reboot). O’Connor has also been at the studio for quite some time, having worked on Conker’s Bad Fur Day, and is also gone after the cancellation of Everwild.

And I would say, “That’s it for now,” but no one, not even Microsoft since this is their fourth set of layoffs in about 18 months, could possibly know. It’s been, for all intents and purposes, a bloodbath. But you know who thinks all of this is the best decision and the one that will position the brand for continued success? Why, Microsoft Gaming CEO Phil Spencer, of course!

Before news of all these cancellations and layoffs fully circulated, Spencer sent out a note (obtained by Windows Central), stating, “To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness.” However, in the next paragraph, he admits that all of this is happening, while, “We have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger.” So what gives?

Spencer continues, “The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years, and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate efforts on areas with the greatest potential while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.”

He offered the usual spiel for those let go – “We would not be where we are today without the time, energy, and creativity of those whose roles are impacted,” “These decisions are not a reflection of the talent, creativity, and dedication of the people involved” (which is one way of saying, “It’s not you, it’s me”). But perhaps the most notable is, “Our momentum is not accidental—it is the result of years of dedicated effort from our teams.” So naturally, the obvious next step is to lay off those workers to thank them for their work thus far. The worst part about the note is how “the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.” This seemingly indicates that more layoffs and cancellations are coming.

As annoying as all this is, Xbox Game Studios’ Matt Booty followed with an internal email confirming the cancellation of Perfect Dark and Everwild and the winding down of “several unannounced projects” (which seemingly includes ZeniMax Online’s Blackbird). “These decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape,” said Booty. “We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.”

However, he then goes on to note that the overall plan remains “unchanged,” which is to “build games that excite our players, continue to grow our biggest franchises, and create new stories, worlds, and characters.” There are apparently over 40 projects in “active development” and “continued momentum” on games launching this Fall (and no, we don’t know of any new titles outside of The Outer Worlds 2). Furthermore, it has a “strong slate” going into the next year.

What is the point of this section other than to inspire confidence among those left that Microsoft isn’t dying anytime soon or perhaps no further cancellations are on the way? Thinking back to the end of Spencer’s note, now might not be the right time to brag about “continued momentum.” Then again, Booty is the one who looked at rumors about Perfect Dark’s troubled development and said, “It’s quite the opposite.” He also called reports of Everwild’s development rebooting in 2021 as “a little extreme” than what really happened. Do I expect any executive in such a position to be candid and admit fault? Well, no, but then again, I also don’t expect to hear about all the wonderful things Xbox has in the works after my colleagues and co-workers lost their jobs.

So, with all that out of the way, Microsoft’s tally for layoffs in 2025 sits at over 15,000 employees thus far. The real question, at least for the time being, is: What hasn’t been cancelled? Apparently, everything from the recent Xbox Games Showcase (conveniently enough) is safe, according to Windows Central. It’s also been suggested that the company’s next-gen console plans “remain unaffected.” You know, the one part of the Gaming Division’s revenues that have seen constant declines. Then again, I don’t know if you can boast about the revenue from content and services too much since Call of Duty and Minecraft (followed by Game Pass) contributed heavily to the same.

Taking a step back, it’s easy to look at all this and simply blame Microsoft. And make no mistake – it really is that easy, considering Spencer and crew have been at the helm for some of the company’s biggest failings. The closure of Tango Gameworks, Arkane Austin, and Alpha Dog Studios. Increasing the price of major first-party games to $80. Declining hardware revenue. Multiple years with no games to offer loyal fans. High-profile disappointments, like Halo Infinite at launch and Redfall.

Depending on who you ask, even releasing first-party titles to PlayStation 5 and Nintendo Switch, which proved financially successful, was viewed as the company admitting defeat in the console wars. Which, going by the numbers, should be a given. You may think that the cancellations of Everwild and Perfect Dark are justified, given years of troubled development.

Yet Microsoft oversaw both studios and dozens of others. When a 2022 report emerged about a toxic work environment at Undead Labs under its new studio head and HR head, leading to numerous departures and stalled development on State of Decay 3, Microsoft was specifically called out for not acting sooner.

In the past, Phil Spencer has admitted that upper management was hands-off, leaving studios to their own machinations – which was the reason (among many) why Redfall shipped in its sorry state. He then claimed that the team did “a better job” helping with Bethesda’s Starfield, but even if you’re a fan of it, there’s no denying the bugs, glitches, crashes, and quality-of-life issues that it shipped with (after delays, at that).

However, if we’re outlining everything that Microsoft has done wrong with the Xbox brand, you could go all the way back to 2013 (and some people have), pointing to Microsoft effectively nailing its own coffin shut with how it presented the Xbox One. Even after backtracking on Kinect, always-online requirements, used-game ownership and a focus on TV media, it was still effectively sent to die against the PS4 later that year. Some may even go back further and blame its focus on Gears of War, Forza, and Halo – the top three, as it were – and the inability to nurture new franchises, which prompted the acquisition of Ninja Theory, Compulsion Games, Playground Games and many more in the years to come.

Whether that acquisition-fueled mayhem and the less-than-stellar returns are to blame or not, this process of acquiring studios and then shuttering them after however many years isn’t all that surprising. Flashback to 2021, when Sarah Bond, then-head of Game Creator Experiences and Ecosystem at Xbox, reflected on shutting down Lionhead Studios in 2016 after acquiring it in 2006. “What did we learn, and how do we not repeat our same mistakes?” Spencer followed up by stating, “You acquire a studio for what they’re great at now, and your job is to help them accelerate how they do what they do, not them accelerate what you do.” Based on everything that’s happened, it seems that leadership at Microsoft Gaming and Xbox Game Studios has a long way to go.

Many players are still wondering why Spencer – and other leadership figures like Matt Booty – are still in charge, given the brand’s failures over the past several years. We’ve heard Xbox president Sarah Bond talking about a new multi-year partnership with AMD across “a portfolio of devices,” including next-generation Xbox consoles, where one of the stated goals was to deliver “immersive gameplay and player experiences enhanced with the power of AI.”

However, Microsoft signed a deal with OpenAI in 2019, though Business Insider reported tensions between the two companies, casting some doubts on whether their partnership can last until 2030. That being said, Microsoft has still invested a whopping $13 billion into it thus far. All that money has to come from somewhere, and unfortunately, we may be seeing the result of that.

Of course, that still doesn’t excuse the current direction of Xbox – whatever that may currently be. Yes, Forza Horizon 5, Indiana Jones and the Great Circle and Sea of Thieves are successful on PlayStation 5. And while I was somewhat optimistic about Microsoft taking a multi-centric approach to offering its games on numerous platforms, I still don’t understand the whole “This is an Xbox” marketing campaign.

Or why the company had to tie up with Meta to release a $500 Meta Quest 3S Xbox Edition in limited supplies when none of its titles supports VR. As great a deal as Game Pass has been for the company, it hasn’t seen anywhere near the level of growth in the past few years as when it first began. The amount that Microsoft is investing in it continues to grow, however, and even if it’s helping many players discover brand-new titles, the argument that it’s effectively cannibalizing first-party sales will never truly go away.

The industry as a whole has faced unprecedented instability since the COVID-19 pandemic ended, with layoffs regularly happening as early as 2023. As perhaps the biggest games publisher in the world, Microsoft is no stranger to mass cuts – look no further than 2014 when it cut 18,000 employees, though that primarily affected the Nokia division. And while it may have a pretty impressive line-up of titles to come, Laura Fryer, one of the founding members of the original Xbox team, recently said it best.

“What is the long-term plan? Where are the new hits? What will make people care about the Xbox 25 years from now?” She noted that with the 25th anniversary of Xbox approaching in 2026, perhaps it’s “the year that the fog will clear and all of us will see the beauty in these latest announcements.” Whether that will be the case or not, the dark cloud currently hanging over Microsoft and its Gaming Division isn’t going away any time soon.

Note: The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, GamingBolt as an organization.

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.

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.

That’s as per journalist Jez Corden, who claimed on a recent episode of the Xbox Two Podcast that though State of Decay 3 was tentatively targeting a 2025 release at one point, the game may now have slipped into a 2026 launch window. 

We finally got a new in-engine trailer for State of Decay 3 in June, which was also the first look at the game since its announcement with a CG teaser back in 2020, but we still haven’t seen actual gameplay footage yet, suggesting that the title might be a ways out yet. 

Of course, with the likes of Avowed, DOOM: The Dark Ages, Fable, South of Midnight, and The Outer Worlds 2, Xbox has a pretty dense schedule geared up for 2025, so State of Decay 3 slipping into 2026 might not be the worst thing in the world.