Multiple outlets report that Microsoft’s Xbox is considering closing Undead Labs, the studio behind the State of Decay franchise. The reports link the potential closure to a broader round of cuts affecting Microsoft-owned studios. NDTV says the company plans to shut down several studios and announce layoffs in July, and a separate report included Undead Labs among those at risk. Eurogamer similarly reports that Undead Labs is among the studios Microsoft may close. Both accounts identify Undead Labs as the developer of State of Decay and note that the studio is working on State of Decay 3, described as a survival shooter and management simulation. Eurogamer also notes that State of Decay 3 was shown during the Xbox Showcase earlier in the month. The reports do not provide confirmation from Microsoft about whether Undead Labs will be closed, but they describe a scenario in which studio closures and layoffs may be announced as part of cost-cutting measures.