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Shortly after Asha Sharma, the CEO of Xbox, revealed that Microsoft was overhauling its business strategy, speculation began to circulate about numerous layoffs, including at Undead Labs, the studio behind State of Decay 3, along with hints of a possible studio shutdown.
Unfortunately, Sharma later confirmed the layoffs, revealing that they would affect around 1,600 jobs. Microsoft also confirmed plans for additional layoffs during the current fiscal year, which could affect around 3,200 jobs by the end of next June.
Undead Labs is one of two studios, alongside Ninja Theory, that Xbox has confirmed it will sell. Following the announcement, the State of Decay 3 developers took to Reddit to reassure fans that development remains on track and that the game will still launch. While the developers couldn’t share more details, they confirmed that the transition away from Xbox won’t cancel State of Decay 3.
The Reddit post states:
Today, Undead Labs begins a new chapter. We’re transitioning out of Xbox, and while we can’t share all the details just yet, we can tell you this: State of Decay 3 is still coming. The team is working hard, and our commitment to this community has never been stronger. More news soon. Survivors stick together.
The latest report from GameFile also confirms that an unknown buyer has already acquired the studio. As a result, Xbox will no longer control decisions such as whether the game launches on Game Pass. More details about the studio and its new owner are expected later this summer.
This is undoubtedly a difficult time for the gaming industry. Still, we’re glad Undead Labs found a new buyer, ensuring the team’s years of work on State of Decay 3 won’t go to waste, as the game remains in active development for its planned release next year.
