Undead Labs splits from Xbox, says State of Decay 3 remains in development
Studio becomes employee-owned and says the game is in alpha with a closed beta planned by the end of 2026
Undead Labs separated from Xbox and became an independent, employee-owned studio, and said on September 22 that State of Decay 3 is currently in alpha with plans for a closed beta by the end of 2026 and a 2027 launch on Xbox, Game Pass, PC, and PlayStation.
The studio shared the update in a September 22 blog post, saying independence will let the team focus on its community and on making its projects. Studio Head Phillip Holt said, "Independence brings us closer to our community and lets us focus on what matters most: making the best games we can and earning the continued support of the people who choose to spend their time with us."
Undead Labs also acknowledged its long relationship with Microsoft, writing, "We’re enormously grateful for our years as part of XBOX and for everything that relationship has made possible. Microsoft has been part of the State of Decay story from the very beginning, and we’re proud of everything we’ve accomplished together."
The blog post gives the clearest timeline yet for State of Decay 3: alpha now, a closed beta window by the end of 2026, and a planned release in 2027 across Xbox, Game Pass, PC, and PlayStation.
