State of Decay 3 uncertain for Xbox Game Pass after Undead Labs exits Microsoft

State of Decay 3’s planned relationship with Xbox Game Pass is reported as uncertain after Microsoft moves to part ways with its studio Undead Labs. The game, previously treated as an Xbox first-party title after Undead Labs joined Microsoft in 2018, is now described by multiple outlets as potentially not launching day one on Game Pass. The shift is linked to Microsoft’s broader restructuring of its Xbox division, including layoffs that have affected the company’s gaming workforce, and to the decision to let Undead Labs leave. While details of any revised publishing or subscription deal are not confirmed in the reports, the studio’s change in status is presented as a key factor that could alter distribution plans for State of Decay 3. The coverage frames the situation as a major change for the development team during a turbulent period in Undead Labs’ history, suggesting that Microsoft’s strategic adjustments may be influencing the game’s availability on Game Pass at launch.