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Undead Labs Says State of Decay 3 Must Change After Layoffs

Industry·October 10, 2026

Undead Labs Says State of Decay 3 Must Change After Layoffs

Undead Labs has acknowledged that its plans for State of Decay 3 will need to shift after a round of layoffs. The studio recently bought back its independence and left Xbox last month, and the job cuts that came with the separation are now shaping what comes next for the zombie survival series.

In its comments on the split, the studio said it has "got to make some changes" to State of Decay 3. The statement, as reported, does not spell out which parts of the project will be affected, whether the scope or schedule will change, or how many people were let go, so the extent of the revisions remains unclear.

The franchise has deep ties to Xbox. The original State of Decay debuted on Xbox 360 before arriving on Xbox One, and its sequel launched on Xbox One and PC in 2018. Undead Labs being independent again means it now carries the full weight of deciding how State of Decay 3 gets made and released, and fans will be watching for more concrete details on what that looks like.

We will update this story if the studio shares more about the scope of the changes or the status of the game.

Reporting based on an external source.