Report Claims State of Decay 3 Developer Undead Labs Could Be Shut Down
Microsoft’s Xbox studio closures expand to include *State of Decay 3* developer Undead Labs, raising fears for post-apocalyptic gaming’s future.
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The brief
Undead Labs, the developer behind the upcoming *State of Decay 3*, is reportedly among Microsoft’s Xbox studios facing potential shutdown, according to multiple gaming outlets. Coverage from *ixbt.games*, *Video Games Chronicle*, *Push Square*, and *Insider Gaming* highlights the uncertainty surrounding the studio’s future and its impact on the franchise’s development. The reports emphasize the broader trend of Microsoft restructuring its Xbox Game Studios division, with Undead Labs now included in the list of affected studios.
While no official confirmation has been issued, the timing—amid a wave of studio closures—has sparked speculation about the game’s viability and the franchise’s long-term prospects. Outlets note that *State of Decay 3* was revealed as a PlayStation 5 exclusive, complicating its future under a potential Xbox shutdown. What to watch next: Official statements from Microsoft or Undead Labs regarding the studio’s status and the game’s development timeline.
Industry observers may also scrutinize how this affects other Xbox-exclusive franchises and whether Sony or other platforms could step in to support *State of Decay 3*’s development.
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Quick answers
Is *State of Decay 3* still being developed?
Coverage does not yet specify whether development has halted or if the game’s release is still planned. Reports only confirm Undead Labs is under threat of closure.
Will *State of Decay 3* be canceled if Undead Labs shuts down?
No direct confirmation exists, but the studio’s closure would likely jeopardize the game’s development unless another entity takes over.
Is this part of a larger trend in Xbox studio closures?
Yes. Multiple outlets have reported other Xbox studios facing shutdowns, positioning Undead Labs as the latest in a series of restructuring moves by Microsoft.
Coverage (4)
- Undead Labs, the studio behind State of Decay 3, is under threat of closure ixbt.games · 2h ago
- State of Decay 3’s Undead Labs named as another Xbox studio facing closure Video Games Chronicle · 2h ago
- Rumour: State of Decay 3 Dev Also Facing Xbox Axe, Weeks After Game Was Revealed for PS5 Push Square · 2h ago
- Report Claims State of Decay 3 Developer Undead Labs Could Be Shut Down Insider Gaming · 2h ago
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