Undead Labs announced staff layoffs following its separation from Xbox to become an independent, employee-owned studio. Studio head Philip Holt confirmed that State of Decay 3 remains in active development with a 2027 release window.
- Developer: Undead Labs
- Previous Owner: Xbox
- Current Status: Independent, employee-owned
- Release Target: 2027
- Launch Platform: Xbox Game Pass (day one)
Studio Independence Announcement
The studio revealed the staff reductions on LinkedIn as part of its structural transition away from Xbox. Holt addressed the community regarding the studio's new operational model.
"Independence brings us closer to our community and lets us focus on what matters most: making the best games we can and earning the continued support of the people who choose to spend their time with us"
Philip Holt, Studio Head
Game Development Status
The restructuring comes while production continues on the studio's flagship franchise. Holt addressed concerns regarding the project timeline following the workforce reductions.
"State of Decay 3 remains in active development, and these changes will not impact the game's launch"
Philip Holt, Studio Head
