A new interview with Undead Labs studio head Philip Holt has revealed new details about State of Decay 3. Things are looking up for the game and studio following its split from XBOX, and development is still full steam ahead.
State of Decay 3 developer Undead Labs officially went independent in September 2026. This followed the mass XBOX layoffs, which saw Undead Labs split from XBOX. But State of Decay 3 is moving along, and the game will apparently have a new publisher very soon.
State of Decay 3 Will Focus on Single-Player Over Multiplayer

Philip Holt has been the Undead Labs studio head for nearly seven years, and has pretty much led the game through its years of development. With a State of Decay 3 Beta Playtest imminent, YouTube channel SabiansLastWatch sat down to speak with Holt.
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The key points of the interview were nicely summarized by X user @AerialZer0, and it highlights the key points of the studio’s focus, including:
- ‘Undead Labs now owns State of Decay IP.
- New publisher to be announced soon.
- Console beta planned with crossplay.
- Strong focus on single-player.
- Full pause in single-player.
- Combat rebuilt from scratch, with more tactical fights.
- Larger settlements, multiple bases & 12+ survivors.
- No face or body editor.
- Hair, outfit & backpack customization.
- Existing Freaks getting major redesigns.
- New Freak types planned for post-launch.
- Weather affects driving, zombie perception, crops & water supplies.
- Human enclave relationships change based on player actions.’
So, while there will be multiplayer in the third game, single-player is the priority. Also, it’s great to hear a new publisher is basically locked in.
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You can check out the full interview here.
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