State of Decay 3, which was prominently featured with a new gameplay trailer and a 2027 release window at the Xbox Games Showcase last month, might not arrive on Xbox Game Pass after all. This contradicts earlier announcements that confirmed its inclusion on the subscription service alongside its PlayStation 5 release.

According to a report from Game File, the undisclosed company acquiring developer Undead Labs from Microsoft is not bound by any specific terms requiring the game's presence on Xbox Game Pass. The acquisition deal reportedly lacks any "Xbox-controlling terms," which would include its availability on the subscription platform. This development follows Xbox's recent announcement of selling off Undead Labs and Ninja Theory to unknown buyers, a move accompanied by significant layoffs across various studios, including Double Fine, Compulsion Games, id Software, and ZeniMax Online Studios.

Details about the specific entity purchasing Undead Labs are expected later this summer. State of Decay 3 is planned to feature shared worlds for up to four players and will offer a larger map compared to its predecessor, State of Decay 2. Interested players can currently sign up for alpha playtests on the official State of Decay 3 website.