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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