Overview
- Undead Labs used a management buyout vehicle called Full Measure to leave Microsoft and make current employees shareholders.
- The buyout followed a failed sale attempt to Splash Damage and Microsoft’s broader reset of its games business that forced studio reviews.
- Philip Holt said the transition involved a significant number of layoffs, that he kept staff closely informed throughout, and that he will issue stock options to remaining employees.
- State of Decay 3 remains in active development, has seen some changes after the cuts but was not radically rescoped, and the studio says closed‑beta signups and further testing are planned ahead of a 2027 target with no publisher publicly named.
- The move highlights a wider industry shift as several Xbox studios are returned to independence, forcing teams to trade first‑party ambition for tighter cost control and a need to rely on post‑launch revenue to sustain operations.