State of Decay 3 developer Undead Labs has split from XBOX, but has been saved from closure after another publisher for the upcoming title was found.
XBOX had Undead Labs on the chopping block, despite growing excitement for the release of State of Decay 3, and the separation of XBOX and the studio has been confirmed, although the title will still be released as planned.
Undead Labs Separates From XBOX
In a statement on X, XBOX CEO Asha Sharma confirmed that Undead Labs, alongside Senua developer Ninja Theory, have “entered terms to join new ownership with funding to complete and grow” their respective titles.
Undeads Labs is among four studios being sold off, with Compulsion Games and Double Fine Productions transitioning to independent studios, retaining their IPs. Meanwhile, Arkane Studio is beginning required consultation with its Works Council to review potential strategic options.
The big news, however, is Sharma confirming that “none of our first-party publicly announced games or projects are being cancelled as part of these reductions.”
The separation of Undead Labs from XBOX comes amid a period of turmoil for Microsoft, which is significantly slimming its gaming division amid market challenges, leading to layoffs, studio closures, and game cancellations.
XBOX’s approach has raised eyebrows, however, with Ninja Theory facing closure just after a reveal trailer of Shenhua at the latest showcase, where State of Decay 3 also had a gameplay reveal.
It seems those moves were in a bid to raise interest in the developers for a sale, and Undead Labs looks to have caught a hook.
Check out the State of Decay 3 gameplay trailer below.
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Players / users be damned! All hail the shareholders and Their Endless Hunger
I’m glad Undead seem to have come out unscathed, not only because I’m looking forward to playing SoD3 but also because that team does solid work and shouldn’t be punished for Microsoft’s overall management of the Xbox division. This was the last Xbox franchise I had any interest in, so I guess today, at least for right now, might also mark the end of my Xbox journey which has been a slow demise over the last decade or so.
I’m so excited about this news! State of Decay 3 is the only game I’ve been waiting years for!!
It’s really hard to trust and invest in the microsoft ecosystem because it’s always changing so much..they clearly went crazy on covid numbers and spent 80 billion on ABK and blizzard and now have to sell of things it’s retarded..theres no foresight and clear mismanagement. Xbox future is up in the air…they could be slimming down xbox to sell it off..or they could be streamlining it so it’s more cost effective and not so bloated..bottom line no one has any reason to trust in the future of xbox.
Big reason. GOW E Day. Nuff said 😁👍
I’m just all around disappointed with XBOX. They buy all the studios just to close them and damn those shareholders, Xbox should make just indie games they lost
I don’t mind if it’s not on Game Pass. This is one of the only games I will buy to support the Devs.