Undead Labs confirms significant layoffs after leaving Xbox; State of Decay 3 still targeting 2027

State of Decay developer Undead Labs says it has parted ways with a “significant number” of colleagues after completing its separation from Xbox. In a LinkedIn post tied to its independence announcement, the Seattle studio wrote that not everyone who helped build the studio and the franchise will finish the journey — without naming a headcount. Studio head Philip Holt told IGN that State of Decay 3 remains in active development and that the cuts will not impact the game’s launch. The title is still aimed at 2027 on Xbox, PC, and PlayStation, with day-one Game Pass on Xbox; a closed beta is planned before the end of 2026. Undead Labs is now operating as an independent studio, a path distinct from Ninja Theory, which faces a proposed closure after two failed sale agreements in Xbox’s wider restructuring. Sources: The Verge, IGN, Push Square / Undead Labs. Does Undead Labs’ independence — and these cuts — change how you feel about State of Decay 3’s 2027 window? https://www.youtube.com/watch?v=Q8LK86QqnyA