Undead Labs independent: State of Decay 3 targets 2027 and Game Pass day one
Undead Labs says it is now independent and employee-owned. State of Decay 3 remains in development, with a closed beta goal for late 2026.
- State of Decay 3 is still in development; according to reports, the game is in alpha, with a goal of a closed beta by late 2026 and a release in 2027.
- Microsoft has reportedly confirmed that State of Decay 3 will launch day one on Xbox Game Pass. A PlayStation version has not been officially confirmed.
What happened
Undead Labs announced on October 28, 2024 that its separation from Xbox is complete. Studio head Philip Holt described the developer as fully independent and employee-owned, and said Microsoft has been part of the State of Decay story from the beginning.
In the same announcement, the studio confirmed that State of Decay 3 is still in development. Later reporting from IGN and Kotaku says the game is currently in alpha, with a target of reaching closed beta by the end of 2026. Those same reports also point to 2027 as the intended release year.
GameSpot then reported that Microsoft has confirmed State of Decay 3 will launch day one on Xbox Game Pass. That keeps the game tied to Microsoft’s subscription service, even now that Undead Labs is operating separately from Xbox.
A possible PlayStation release is mentioned in the reporting, but those platform plans have not been independently confirmed. The exact commercial and legal arrangements between Undead Labs and Microsoft also have not been fully detailed in the available sources.
Timeline
October 28, 2024: Undead Labs says its split from Xbox is complete and that the studio will now operate independently and employee-owned.
October 28, 2024: Philip Holt says Microsoft has been part of the State of Decay series from the start and that development on State of Decay 3 continues.
September 22, 2026: GameSpot reports that Microsoft has confirmed State of Decay 3 will launch day one on Xbox Game Pass.
September 22, 2026: IGN and Kotaku report that State of Decay 3 is in alpha, with a closed beta target for late 2026 and a planned release in 2027.
Background
State of Decay 3 is the next game in Undead Labs’ survival series. The studio was part of Xbox for years, but now describes itself as independent and employee-owned. That changes the developer’s corporate structure, while the franchise itself remains with the studio.
The available sources do not mention a concrete release date or a final release window beyond the stated target year of 2027. The reported PlayStation version also remains unconfirmed for now, while Game Pass support still appears to be part of the plan according to the articles provided.
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Sources
- GameSpot: State of Decay 3 lives on and is still coming to Game Pass
- IGN: Undead Labs goes independent after Xbox separation, confirms State of Decay 3 is still in development
- Kotaku: State of Decay 3 studio announces it’s now free from Xbox and employee-owned