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Gamexplore > PC Game > State of Decay 3 Studio Undead Labs Faces Layoffs – Rumor
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State of Decay 3 Studio Undead Labs Faces Layoffs – Rumor

July 3, 2025 2 Min Read
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It’s a tough day for Microsoft staff, with reported layoffs throughout the board. The Gaming Division isn’t any exception, and whereas the total extent of exits is unknown, Uncommon’s Everwild and The Initiative’s Good Darkish have allegedly been cancelled. Naturally, you might assume that different initiatives with few updates over time can be in bother, together with Undead Labs’ State of Decay 3.

In accordance with Kotaku’s Ethan Gach, the studio has additionally confronted layoffs, although it’s “not but clear how widespread.” He additionally talked about that conferences amongst workers have been “displaying up on folks’s calendars on a rolling foundation,” so the scenario continues to be very a lot creating.

How will this have an effect on the event of State of Decay 3, which was introduced in 2020? In 2022, a Kotaku report revealed points with sexism and toxicity on the studio, which led to a number of departures, thus impacting improvement. A brand new in-engine trailer would debut on the Xbox Video games Showcase 2024, and Undead Labs introduced the top of content material updates for State of Decay 2 to deal with the sequel.

Rumors indicated that it may launch in 2026 and doubtlessly seem at this 12 months’s Xbox showcase (which didn’t occur). An unannounced undertaking can also be reportedly within the works on the studio, so the layoffs may very well be associated to the identical. As at all times, keep tuned for additional updates.


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