State of Decay 3 Studio Undead Labs is Now Completely Independent

Undead Labs, which has been operating under Microsoft since 2018, announced that its separation process is complete and it has become an independent company again. This announcement, coming after Xbox’s recent extensive restructuring, addressed some of the uncertainties surrounding the studio’s future. Most importantly, it was announced that the long-awaited new game has not been canceled and its planned release schedule remains in place for now.

Undead Labs Continues Development on State of Decay 3

Undead Labs confirmed that work on State of Decay 3 is actively continuing. The game is currently in alpha and the team aims to move to closed beta by the end of the year. Therefore, the studio’s separation from Xbox does not appear to have created a major change in the project’s development schedule for now.

Release plans remain in place. State of Decay 3 is targeted for release in 2027 for PC, PlayStation, and Xbox. The game will also be available on the Xbox Game Pass catalog. This shows that even though the studio has become independent, the existing publishing and distribution relationship with Microsoft has not completely ended.

Studio head Philip Holt said that independence will bring the team closer to the player community and make it easier for the developers to focus on producing the best games. Holt also emphasized that maintaining the trust of players who have supported the State of Decay series over the years is important to them.

Undead Labs also thanked Microsoft for their long history together, stating that the two companies have accomplished significant things. It is not yet clear what publishing model the studio will follow or what projects it will pursue after State of Decay 3. More details are expected to be shared in the coming period.

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