Undead Labs becomes employee-owned after leaving Xbox, with State of Decay 3 slated for 2027

The Game Business reports that Undead Labs became employee-owned after Xbox sought a buyer, then cut a significant number of jobs. Studio boss Philip Holt says State of Decay 3 is in alpha and scheduled for 2027, with no need for a radical rescope after the cuts. He says a small team had worked on it since maybe 2020, but development did not really pick up until 2022 or 2023. A day-one Game Pass launch is still planned.