Overview
- Undead Labs completed its separation from Xbox on Tuesday and is now an independent, employee‑owned studio, the company said.
- The studio confirmed State of Decay 3 is in alpha and is aiming for a closed beta before the end of 2026 with a target release in 2027.
- Xbox told staff the game has a new, unnamed publisher and will launch day‑one on Game Pass while also releasing on PC and PlayStation 5.
- Undead Labs said it is laying off a "significant number" of employees as part of the transition, noting the cuts affect developers who helped build the franchise.
- The move is part of a wider Xbox restructuring that returned other studios to independence and leaves open questions about long‑term funding, post‑launch support, and the unnamed publisher’s role.