Undead Labs, the development studio behind the forthcoming zombie survival game State of Decay 3, has announced its successful transition to independence. After more than a decade under Xbox's ownership, the studio has finalized its separation and is now an employee-owned entity. This move aligns with Xbox's broader strategy, announced in July, to spin off some of its game development studios.
Philip Holt, Undead Labs studio head, stated that independence will allow the studio to focus more directly on game development and fostering community support. "Independence brings us closer to our community and lets us focus on what matters most: making the best games we can and earning the continued support of the people who choose to spend their time with us," Holt said. He emphasized the studio's dedication to its player base, noting that the State of Decay series exists due to the millions of players who have supported it over the years.
Development on State of Decay 3 is ongoing, with the game currently in its alpha phase. The team is still targeting a closed beta before the end of the year and maintains a 2027 launch window for PlayStation 5, Xbox, and PC. The game will also be available on Game Pass.
Undead Labs initially partnered with Xbox for the release of the original State of Decay in 2013. The studio was acquired by Xbox in 2018 and became part of the Xbox Games Studio portfolio. Reports from Kotaku have previously detailed alleged issues of burnout and a toxic work environment within the studio, which may have contributed to the game's extended development cycle.
This transition marks a significant shift for Undead Labs. However, it follows a different outcome for Ninja Theory, another studio that had been part of Xbox's plan to transition to indie status. Xbox recently confirmed that two deals for Ninja Theory fell through, leading the Hellblade developer to enter a consultation process for closure. Other studios, such as Double Fine and Compulsion Games, have successfully transitioned back to independent operations.