Undead Labs today announced that it has completed its separation from XBOX and is now operating as an independent, employee-owned game development studio.

Development of State of Decay 3 remains actively underway at Undead Labs. The game is currently in alpha, with the team continuing toward the previously announced milestone of entering a closed beta before the end of the year. State of Decay 3 remains targeted for release in 2027 on XBOX, Game Pass, PC, and PlayStation.

 “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,” said Philip Holt, Studio Head of Undead Labs. “State of Decay exists because millions of players have made that choice over the years, and we’re dedicated to honoring their trust.”

 The transition marks a new chapter in a relationship between Undead Labs and Microsoft that spans more than 15 years. The original State of Decay launched in partnership with Microsoft in 2013, and Microsoft acquired Undead Labs in 2018.

“We’re enormously grateful for our years as part of XBOX and for everything that relationship has made possible,” Holt said. “Microsoft has been part of the State of Decay story from the very beginning, and we’re proud of everything we’ve accomplished together.”

 Additional details about Undead Labs’ future plans will be shared at a later date. Players can stay up to date through StateofDecay.com or following us on social media, and can sign up to participate in future State of Decay 3 playtesting at https://playtest.stateofdecay.com/