Xbox has been promising 'State of Decay 3' for years — and now it faces cancellation, despite its trailers and alpha. What are we even doing here?

Microsoft’s *State of Decay 3*—a highly anticipated post-apocalyptic survival game—is reportedly at risk of cancellation after years of development, including trailers and an alpha build. Coverage suggests the project’s studio, Undead Labs, could be shut down or sold due to Microsoft’s ongoing Xbox layoffs and restructuring.

Outlets including *Pure Xbox*, *GamingBolt*, and *PlayFront* cite internal reports indicating Microsoft may liquidate Undead Labs unless a buyer emerges. The game’s development has spanned multiple years, with Microsoft previously teasing its release despite no confirmed release date.

If Microsoft proceeds with closure or sale, *State of Decay 3* could be scrapped entirely. Fans and industry observers will watch for official statements from Microsoft and potential acquisition interest in Undead Labs’ IP.