# State of Decay 3 Revealed Early Due to Xbox Anxiety

> Undead Labs boss admits Xbox's acquisition spree made State of Decay 3 reveal early to avoid being swallowed up.
- Title: State of Decay 3 Revealed Early Due to Xbox Anxiety · IGN
- Summary: Undead Labs boss admits Xbox's acquisition spree made State of Decay 3 reveal early to avoid being swallowed up. Undead Labs' CEO Holt revealed State of…
- Keywords: state of decay 3, undead labs, xbox, microsoft, acquisition spree, studio layoffs, game pass, gaming, entertainment, State, Decay, Revealed
- Source: IGN — https://ign.com/articles/state-of-decay-3-revealed-early-anxiety-xbox
- Author: Kirk McKeand
- Published: 2026-10-06T15:10:00.918+00:00
- Read time: 1 min
- Topics: state of decay 3, undead labs, xbox, microsoft, acquisition spree, studio layoffs, game pass, gaming, entertainment
## State of Decay 3 revealed early
Undead Labs' CEO Holt revealed State of Decay 3 was announced in 2020, two years after State of Decay 2.

> it was a bit of a marker on the table for me. we're saying state of decay 3, we're announcing it, it's public, the audience now knows it's in development.
## Anxiety over Xbox acquisition
Holt expressed worry that Undead Labs might get 'swallowed up or divested' before completing the game.

> i was a little worried about getting swallowed up or even divested before we had a chance to present to the world what we were working on.
## Microsoft acquisition spree
Microsoft acquired Undead Labs in 2018, leading to recent layoffs and studio independence.

> microsoft acquired undead labs, alongside playground games, ninja theory, and compulsion games, in 2018.
## Small team development
Undead Labs had a small team working on State of Decay 3, with development starting in 2023.

> i got myself in a little trouble saying we didn't really have a team working on the game at that point.
## State of Decay 3 development
State of Decay 3 remains in active development despite layoffs and will launch day one on Game Pass.

> it was a relatively small game inside a giant organization.
## Key takeaway

Undead Labs' CEO Holt revealed State of Decay 3 was announced early in 2020 due to fears of being acquired by Microsoft before completion.