Undead Labs weathered Xbox’s latest round of layoffs and confirmed that it now operates independently. The Seattle-based studio behind the State of Decay series had already announced months earlier that it was in the process of leaving Xbox’s structure.The move brings a long relationship with Microsoft to an end. Undead Labs joined the company’s gaming division in 2018, although the partnership between the two companies had existed since 2011.Studio head Philip Holt said independence brings the team closer to its community and allows it to focus its efforts on creating its games. “Independence brings us closer to our community and allows us to focus on what matters most: making the best games we can and earning the continued support of the people who choose to spend their time with us.”- Philip HoltHolt also acknowledged the journey the studio shared with Microsoft. According to him, the company had been part of State of Decay’s history from the beginning, and Undead Labs is proud of what it accomplished during that collaboration.The studio’s immediate future remains tied to State of Decay 3, which is still in development. Announced more than six years ago, the game is currently in the alpha stage and remains scheduled for release on PS5 in 2027.Before then, Undead Labs plans to hold a closed beta test by the end of 2026. The studio has not announced a specific date for the test or provided any new details about the release.
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