State of Decay 3 developer Undead Labs is reportedly one of the Xbox-owned studios under threat in the company's upcoming "massive" layoffs, which will see several studios shuttered or spun off from Microsoft.
According to a report from Gamesbeat, corroborated by Windows Central, Xbox is currently looking for a buyer for Undead Labs. If it is unable to do so, State of Decay 3 may be cancelled and the studio closed.
Undead Labs isn't the only studio in this position, with Psychonauts developer Double Fine, South of Midnight developer Compulsion and Hellblade developer Ninja Theory also in similar positions where they either need to go independent or be successfully sold to another parent company by Xbox.
State of Decay 3 is set to release in 2027, and, like an increasing number of games from Xbox-owned studios, is also set to release on PlayStation 5. You may be led to believe that the game's appearance at a recent Xbox Showcase means Undead Labs is safe, but we already know via Game File that Xbox revealed Ninja Theory's upcoming game Senua in an attempt to attract external investors to the studio.
In other words, nothing Xbox does publicly necessarily indicates...
