State Of Decay 3 Developer Undead Labs Facing Closure

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The Gamer · 3 min read · top_stories

Xbox is seeking a buyer for Undead Labs, developer of State of Decay 3; if unsuccessful, the studio will close and the game—scheduled for 2027—will be cancelled. Double Fine, Compulsion Games, and Ninja Theory face similar pressure to find external buyers or go independent as part of CEO Asha Sharma's restructuring. Recent game announcements, including State of Decay 3 at an Xbox Showcase, may not reflect the studios' actual status behind the scenes.

Mentioned entities

Activision Blizzard Asha Sharma Bethesda Compulsion Double Fine Hellblade Microsoft Ninja Theory PlayStation 5 Psychonauts Senua South of Midnight State of Decay 3 Undead Labs Xbox Xbox Series X/S

Appeared in 2026-06-30.