State of Decay 3’s planned launch on Xbox Game Pass is now in doubt following Microsoft’s decision to separate from developer Undead Labs. The game had previously been positioned as a 2027 release and included in Xbox Game Pass, as reflected in coverage after it reappeared with a new trailer. However, multiple reports say Undead Labs is among the studios Microsoft is letting go as part of wider changes across the Xbox division, which included layoffs affecting thousands of workers.
One outlet reports that a later sale arrangement may not include any obligation or “Xbox-controlling” terms that would require State of Decay 3 to appear on Game Pass. Those accounts indicate that earlier statements linking the game to Game Pass may not carry over if the developer is no longer under Microsoft’s umbrella. Additional reporting notes that Microsoft has also been selling other studios to undisclosed buyers, and that some studios have returned to independent status amid the same restructuring period.
While Game Pass inclusion is uncertain, the game’s announced features—such as shared worlds for up to four players and alpha playtests—are still described in ongoing coverage.
