

State of Decay 3 developer Undead Labs has announced that the studio is now operating as an independent studio, having completed its separation from Xbox. It was previously revealed that Undead Labs would be going independent as a result of the first round of Xbox cuts earlier this year.
Philip Holt, Studio Head at Undead Labs, commented:
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. State of Decay exists because millions of players have made that choice over the years, and we’re dedicated to honoring their trust. We’re enormously grateful for our years as part of XBOX and for everything that relationship has made possible. Microsoft has been part of the State of Decay story from the very beginning, and we’re proud of everything we’ve accomplished together.
The studio stated that State of Decay 3 “remains actively underway at Undead Labs” and that the game is currently in its alpha phase. The goal is to be able to enter closed beta before the end of day as previously announced, and remains on track for a 2027 launch on PS5, PC, and Xbox Series X/S.
[Source – Undead Labs]