# 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.
- Title: State of Decay studio cuts staff after Xbox split · IGN
- Summary: Undead Labs lays off significant staff following independence from Microsoft, but promises the game launches on schedule. Undead Labs confirmed significant…
- Keywords: undead labs, state of decay 3, xbox, microsoft, layoffs, game development, independence, studio closure, 2027 release, technology, news, State
- Source: IGN — https://ign.com/articles/state-of-decay-developer-undead-labs-confirms-significant-layoffs-following-independence-from-xbox
- Author: Cade Onder
- Published: 2026-09-22T23:19:27.269+00:00
- Read time: 1 min
- Topics: undead labs, state of decay 3, xbox, microsoft, layoffs, game development, independence, studio closure, 2027 release, technology, news
## 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.
## Key takeaway

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.