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State of Decay 3 developer lays off staff after split from Xbox, but promises not to delay game

Olivia Bennett by Olivia Bennett
September 23, 2026
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State of Decay 3 developer lays off staff after split from Xbox, but promises not to delay game
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Luo State of Decay 3 developer, Undead Labsconfirming it suffered “significant” layoffs following its independence from Xbox.

The study has Announce on LinkedIn The company is keeping “a significant number” of its employees at home after the development team separated from Xbox.

Words from the Undead Laboratory

“Unfortunately, We also said goodbye to many colleagues today“, we read in a statement from the studio. “Getting to this moment has been difficult because not everyone who helped us get to this point will be able to continue the rest of the journey with us. ”

“They are very talented developers Working on the “State of Decay” series for many years: Solve complex problems, support each other, and help shape this game and this studio. No matter where their careers take them next, their work will still be a part of Undead Labs and State of Decay 3. ”

State of Decay 3 is out and we played it at Gamescom

State of Decay 3 is out and we played it at Gamescom

Undead Labs studio head Philip Holt issued the following statement to IGN USA confirming The game’s release won’t suffer any setbacks Due to these layoffs: “State of Decay 3 is still in active development and these changes will not impact the game’s release,” Holt said.

“He formed a team Work is continuing as planned We remain committed to delivering the experience our community has come to expect. We thank everyone who contributed to the game. ”

We remind you that the game will be available on Game Pass and is expected to be tested within the year.

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