Undead Labs, the developer behind the State of Decay series, has announced it has reached an agreement with a new publisher that will allow the studio to continue its work on State of Decay 3. Microsoft has confirmed that the game will still launch day-one on Xbox Game Pass when it is ready.
The studio revealed its new status as a completely "independent, employee-owned game development studio." Philip Holt, Studio Head of Undead Labs, expressed gratitude for their past relationship with Xbox. "We're enormously grateful for our years as part of XBOX and for everything that relationship has made possible," Holt stated. "Microsoft has been part of the State of Decay story from the very beginning, and we’re proud of everything we’ve accomplished together."
This development follows a series of recent organizational changes at Microsoft. Undead Labs was among several studios that Microsoft has offloaded in recent months, with Double Fine and Compulsion Games also finding new publishing arrangements away from the Xbox publishing arm. In contrast, Ninja Theory reportedly faces closure.
The news comes amidst a significant restructuring across Microsoft's game development studios. Halo is now under the purview of Activision, while Rare and its game Sea of Thieves will also shift direction. Obsidian, currently developing a new Fallout title, will now report to Bethesda, and Playground Games and Turn 10 are being merged to consolidate the future of the Forza franchise.