Do you want the good news or the bad news about State of Decay 3?

A big gross zombie
(Image credit: Undead Labs)
Undead Labs logo of a bird holding an axe and shotgun
Undead Labs

"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."

"Unfortunately, today we are also saying goodbye to a significant number of our colleagues. It's difficult to reach this moment knowing that not everyone who helped get us here gets to make the rest of the journey with us. "

PC Gamer headshot - Christopher Livingston
Christopher Livingston

I honestly wouldn't have put strong odds on State of Decay 3 seeing the light of day. Even before the Microsoft mass layoffs we hadn't heard much about the survival game since the 2020 reveal trailer, and we found out later the game only existed in a Word document when that trailer was released.

In 2024 it rose from the dead again with another trailer, and then there was basically nothing until this past April when alpha tests were announced. Then July hit, and Undead Labs was part of the "significant restructure" at Microsoft: the studio was dumped, in other words.

But as its name hints, Undead Labs simply wouldn't die and becoming employee-owned sounds like a great first step toward a new future... but as we saw with Double Fine, that first step also includes, you guessed it, more layoffs. Even good news comes with bad news these days.

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Christopher Livingston
Senior Editor

Chris started playing PC games in the 1980s, started writing about them in the early 2000s, and (finally) started getting paid to write about them in the late 2000s. Following a few years as a regular freelancer, PC Gamer hired him in 2014, probably so he'd stop emailing them asking for more work. Chris has a love-hate relationship with survival games and an unhealthy fascination with the inner lives of NPCs. He's also a fan of offbeat simulation games, mods, and ignoring storylines in RPGs so he can make up his own.

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