Undead Labs cuts staff after employees buy studio from Xbox

The Game Business reports that Undead Labs employees bought the studio from Xbox and secured a new, unnamed publisher for State of Decay 3. Studio boss Philip Holt said the newly independent company cut a significant number of staff to build a sustainable cost structure. He said the cuts required changes to the game, but not a radical rescope. The game is in alpha and scheduled for 2027, with a day-one Game Pass launch still planned.