State of Decay 3 Developer Undead Labs Splits From XBOX
Microsoft sells off a dormant Xbox studio while its sole upcoming title pivots to PlayStation
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The brief
Undead Labs, developer of the *State of Decay* zombie survival series, has formally separated from Microsoft’s Xbox division. The split follows broader restructuring at Microsoft, which has sold or divested multiple studios in recent months, including Hellblade developer Ninja Theory. Coverage highlights the abruptness of the move: Polygon notes Undead Labs’ last game, *State of Decay 2*, shipped in 2018, while Insider Gaming reports the title may no longer appear on Xbox Game Pass.
Push Square and GameSpot emphasize the studio’s shift to Sony, though neither confirms a buyer for Undead Labs. The sale underscores Microsoft’s ongoing consolidation of its game development portfolio, with no details yet on the acquiring entity or financial terms. Watching next: Whether *State of Decay 3*’s PS5 exclusivity signals a broader trend of Xbox studios defecting to competitors, and how Microsoft’s divestment strategy will impact its first-party game lineup.
Speculation may also grow around potential buyers, given the studio’s niche but dedicated fanbase.
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Quick answers
Will *State of Decay 3* still release on Xbox?
No. Undead Labs confirmed the game is now PlayStation 5 exclusive.
How many games has Undead Labs released under Xbox?
Two: *State of Decay* (2013) and *State of Decay 2* (2018). No new titles have shipped since.
Are other Xbox studios being sold?
Yes. Coverage mentions Hellblade developer Ninja Theory is also part of a divestment, though buyers remain unspecified.
Coverage (5)
- 'State of Decay 3 Is Still Coming': Undead Labs Commits to PS5 Survival Game As It Exits Xbox Push Square · 3h ago
- State of Decay 3 May Not Release On Xbox Game Pass Insider Gaming · 13h ago
- State Of Decay And Hellblade Devs Are Being Sold, But Buyers Remain Mysterious For Now GameSpot · 13h ago
- Xbox officially divests a studio that released 0 games in 8 years Polygon.com · 13h ago
- State of Decay 3 Developer Undead Labs Splits From XBOX Insider Gaming · 13h ago
Topics
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