What Happens to State of Decay 3 After Undead Labs Leaves Xbox now has a clear answer because Undead Labs has completed its separation from Xbox. The studio is independent and employee-owned, but State of Decay 3 remains actively in development and is still planned for 2027 on Xbox, Game Pass, PC and PlayStation.
The most important part of What Happens to State of Decay 3 After Undead Labs Leaves Xbox is continuity. Undead Labs says the game is currently in alpha and is still working toward a closed beta before the end of 2026. Xbox separately says State of Decay 3 will release day one on Game Pass with a new publisher.
What Happens to State of Decay 3 After Undead Labs Leaves Xbox? Development continues at Undead Labs
Image credit: Undead Labs.
The official Undead Labs announcement confirms that the studio has completed its separation from Xbox and now operates as an independent, employee-owned developer.
It also confirms that State of Decay 3 remains actively in development at Undead Labs. The developer itself has not been replaced.
Is State of Decay 3 still coming to Xbox?
Yes. The platform answer inside What Happens to State of Decay 3 After Undead Labs Leaves Xbox remains Xbox, PC and PlayStation, with Game Pass also confirmed. Undead Labs still targets 2027.
The separation does not turn State of Decay 3 into a PlayStation-only release or remove its Xbox version.
Is State of Decay 3 still on Game Pass?
Yes. Xbox’s September restructuring memo specifically says the game will release day one on Game Pass after the Undead Labs transition.
That makes Game Pass one of the clearest parts of the answer: studio ownership changed, but the announced subscription launch did not.
Who owns Undead Labs now?
Undead Labs says it is now independent and employee-owned. This is a major structural change in What Happens to State of Decay 3 After Undead Labs Leaves Xbox because Microsoft acquired the studio in 2018.
The studio is therefore no longer an Xbox first-party developer.
Who is publishing State of Decay 3?
Xbox says Undead Labs has transitioned and, with a new publisher, will release State of Decay 3 day one on Game Pass. The memo does not name that publisher, so What Happens to State of Decay 3 After Undead Labs Leaves Xbox should not attach an unconfirmed company to the role.
What stage of development is it in?
The game is currently in alpha. For What Happens to State of Decay 3 After Undead Labs Leaves Xbox, that matters because the separation is happening while production is active rather than after completion.
Undead Labs says it is still aiming for the previously announced closed beta milestone before the end of 2026.
Has State of Decay 3 been delayed?
No new delay is announced alongside What Happens to State of Decay 3 After Undead Labs Leaves Xbox. Undead Labs still targets 2027.
There is no exact release date in the independence announcement, so 2027 remains the confirmed target rather than a specific month.
Will it still come to PlayStation?
Yes. Undead Labs lists PlayStation alongside Xbox, Game Pass and PC when answering the future behind What Happens to State of Decay 3 After Undead Labs Leaves Xbox.
What did Microsoft provide during the transition?
Xbox says Undead Labs transitioned on similar terms to Compulsion Games and Double Fine, which returned to management with IP, back catalogues and runway funding. The September memo does not publish Undead Labs’ financial terms, so What Happens to State of Decay 3 After Undead Labs Leaves Xbox should not invent a sale price or funding amount.
Current State of Decay 3 status
The current answer to What Happens to State of Decay 3 After Undead Labs Leaves Xbox is same developer, active development, alpha now, closed beta targeted before the end of 2026, 2027 release target, Xbox and PlayStation intact, PC intact, and day-one Game Pass intact.
For the wider context, see our Xbox Reset overview and Xbox Game Pass September coverage.
