Undead Labs split from Xbox Game Studios and went back to being an independent studio the very same day Microsoft confirmed a new round of gaming cuts. The State of Decay developer was hit hard, with significant layoffs tied to the change.
The studio hasn’t said how many people lost their jobs. Even so, this didn’t come entirely out of nowhere. Undead Labs had already been hinting that it was pulling away from Xbox after years under Microsoft, which bought the team in 2018 after working with it since the original State of Decay launched in 2011. Studio head Philip Holt said Microsoft has been part of the series from the start. Reports also say the company was bought back by management, which would make Undead Labs employee-owned.
If you’re keeping an eye on State of Decay 3, the main update is simple: it’s still in development. Reports say it’s in alpha right now and aiming for a 2027 release, though cuts at the studio could still push that around. The same reports say State of Decay 3 is planned for Xbox, PC, and PlayStation 5. If that holds, it’ll be the first time the series has gone beyond Xbox platforms. A closed beta is also reportedly expected before the end of 2026.
All of this lands in the middle of a larger Xbox shake-up that, according to reports, has brought thousands of job cuts, studio changes, and fresh uncertainty around teams like Ninja Theory. For now, State of Decay 3 is still expected on Xbox, PC, and PS5.
Author: Emmanuel Bosque
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"es-ES": "Emmanuel Bosque cubre videojuegos en Softonic: lanzamientos, actualizaciones que convierten un juego en otro sin decirlo y los movimientos de una industria que casi nunca avisa. Escribe pensando en quien va a jugar, no en quien va a discutir: qué se puede jugar hoy, en qué plataforma y si de verdad merece la descarga. Forma parte del equipo editorial de Softonic y trabaja a diario con herramientas de IA en la producción de contenido.",
"fr-FR": "Emmanuel Bosque couvre les jeux vidéo chez Softonic : sorties, mises à jour qui transforment discrètement un jeu en un autre, et une industrie qui prévient rarement à l'avance. Il écrit pour celui qui va jouer, pas pour celui qui va débattre : ce qui est jouable aujourd'hui, sur quelle plateforme, et si le téléchargement en vaut la peine. Il fait partie de l'équipe éditoriale de Softonic et travaille au quotidien avec des outils d'IA dans la production de contenu.",
"it-IT": "Emmanuel Bosque si occupa di videogiochi su Softonic: uscite, aggiornamenti che trasformano un gioco in un altro senza dirlo e un'industria che quasi mai avvisa in anticipo. Scrive per chi ha intenzione di giocare, non per chi ha intenzione di discutere: cosa si può giocare oggi, su quale piattaforma e se vale davvero il download. Fa parte del team editoriale di Softonic e lavora ogni giorno con strumenti di IA nella produzione dei contenuti.",
"nl-NL": "Emmanuel Bosque schrijft bij Softonic over videogames: releases, updates die een spel stilletjes in een ander spel veranderen, en een industrie die haar stappen zelden vooraf aankondigt. Hij schrijft voor wie gaat spelen, niet voor wie gaat discussiëren: wat je vandaag kunt spelen, op welk platform en of de download het waard is. Hij maakt deel uit van de redactie van Softonic en werkt dagelijks met AI-tools in de contentproductie.",
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