Multiple reports say Microsoft’s Xbox is considering closing or restructuring Undead Labs, the studio behind the State of Decay series. The allegations come amid a broader round of Xbox cuts that includes planned studio shutdowns and layoffs, with one report citing July for announcements. Eurogamer and others report that Undead Labs is among the Microsoft-owned teams at risk. The studio is currently developing State of Decay 3, described as a survival shooter and management game, which Microsoft highlighted during an Xbox showcase earlier in the month. Polygon similarly frames the situation as potential closure or sale of the studio, tying the risk to significant planned layoffs. TechGenyz adds that the studio’s uncertain future follows a major gameplay reveal for State of Decay 3 during the Xbox Games Showcase 2026, with the game positioned for a 2027 release on Xbox platforms. Push Square reports that Undead Labs commits to continuing State of Decay 3 for PS5 even as it exits Xbox, though the overall reports still describe the possibility that Undead Labs could be closed by Xbox as part of the company’s cost-cutting efforts.
Report: Xbox considers closing Undead Labs as part of studio cuts
Multiple reports say Microsoft’s Xbox is considering closing or restructuring Undead Labs, the studio behind the State of Decay series. The allegations come amid a broader round of Xbox cuts that incl...
- Undead Labs, the studio behind the State of Decay series, is reportedly at risk of closure or sale by Xbox.
- Reports link the situation to a wider Xbox round of cuts, including planned layoffs and possible studio shutdowns.
- State of Decay 3, developed by Undead Labs, is referenced as ongoing following an Xbox showcase reveal.
- One report says Xbox is planning to announce actions related to layoffs and shutdowns in July.
- At least one outlet reports Undead Labs commits to bringing State of Decay 3 to PS5 even as it exits Xbox.
Survivors stick together.I wrote an article just two weeks ago headlined ‘State of Decay 3 Looks to Have All the Ingredients for Success’.I’m genuinely shocked to see Xbox effectively wash its hands of dev Undead Labs, then, because I think there’s a good chance this title blows up.Read the full article on pushsquare.com
1 month agoUndead Labs, the Microsoft-owned studio behind State of Decay 3, is reportedly among the Xbox teams facing an uncertain future. The report comes only weeks after State of Decay 3 received a major gameplay reveal during the Xbox Games Showcase 2026, where Microsoft positioned the long-awaited zombie survival sequel for a 2027 launch across Xbox […]
1 month agoState of Decay 3 developer Undead Labs is in danger of being shut down or sold off by Xbox. The gaming giant is preparing significant layoffs.
1 month agoUndead Labs, the team behind the State of Decay series, was revealed to be among the Microsoft-owned studios under threat of closure. Undead Labs is currently working on survival shooter and management sim State of Decay 3, and the game was part of the Xbox Showcase earlier this month. Read more
1 month agoState of Decay 3 developer Undead Labs is reportedly facing closure amidst a major round of cuts at Xbox. The company is set to shut down several studios and announce layoffs in July, and a new report claims Undead Labs is among the studios at risk of closure.
1 month ago
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