State of Decay 3 studio head on leaving Xbox: from tentpole first-party IP to ensuring survival

Undead Labs has separated from Xbox after a planned sale to Splash Damage fell through, financing a management buyout instead. Studio head Philip Holt told The Game Business that inside first party State of Decay was expected to grow into a tentpole Xbox IP, while as an independent company it must ensure survival and a durable cost structure. He did not name State of Decay 3's new publisher or say how many people were laid off last month; the studio will be employee-owned with stock issued in coming weeks, and the acquisition vehicle is called Full Measure. State of Decay 3 will soon open closed beta sign-ups on PC, with a full alpha test planned for 2027.