From IGN · Cade Onder · · 1m 20s
State of Decay studio cuts staff after Xbox split
Undead Labs lays off significant staff following independence from Microsoft, but promises the game launches on schedule.
In brief
Undead Labs lays off significant staff following independence from Microsoft, but promises the game launches on schedule. Undead Labs confirmed significant layoffs after becoming independent from Xbox, but the studio head assured that State of Decay 3's 2027 release date remains unchanged. Originally reported by IGN.
Undead Labs splits from Xbox
State of Decay developer Undead Labs has become independent from Xbox as part of Microsoft's broader reset of the gaming brand announced earlier this summer.
Significant layoffs announced
The studio confirmed on LinkedIn that it is parting ways with a significant number of staff members following the separation from Xbox.
“Unfortunately, today we are also saying goodbye to a significant number of our colleagues.”
Talented developers losing jobs

The laid-off staff are described as exceptionally talented developers who have spent years solving problems and shaping the State of Decay franchise and studio.
“They are exceptionally talented developers who have poured years into the State of Decay franchise.”
Game launch stays on track
Studio head Philip Holt told IGN that State of Decay 3 remains in active development and the layoffs will not impact the game's launch or schedule.
“State of Decay 3 remains in active development, and these changes will not impact the game's launch.”
2027 release date confirmed
State of Decay 3 remains scheduled for a 2027 release, with the studio expressing enthusiasm about its future as an independent company.
Independence brings focus
Holt said independence allows the studio to focus on making the best games possible and earning continued support from the community that has sustained State of Decay.
“Independence brings us closer to our community and lets us focus on what matters most.”
The bottom line
Undead Labs confirmed significant layoffs after becoming independent from Xbox, but the studio head assured that State of Decay 3's 2027 release date remains unchanged.


