State of Decay 3 is moving forward and is not affected by the layoffs at Xbox

Undead Labs continues to work on the game unchanged after Microsoft's restructuring.

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Amidst the cuts that are shaking Microsoft Gaming, some studios are moving forward with their plans unchanged. According to Jez Corden, a specialized journalist from Windows Central, Undead Labs is not affected by the current layoffs, and the development of State of Decay 3 continues as normal.

The clarification comes in a context of uncertainty, after the cancellation of Everwild and massive cuts in studios like Turn 10 or Bethesda London. Many users were wondering about the status of projects in development, and State of Decay 3 was one of the most mentioned on social media.

Undead Labs continues development without interruptions

As Corden assures through his social media, State of Decay 3 is safe from this round of cancellations and cuts, and there are no signs that the team is being restructured. Undead Labs has been working on the title for some time, which was briefly shown during the Xbox Games Showcase 2024 with a new cinematic.

• Although it still doesn’t have a specific release date, the project is part of the group of medium-term titles within the Xbox Game Studios strategy. The fact that it remains standing while others fall is a sign of confidence from Microsoft.

We’ll have to stay tuned for future official announcements, but for now, fans of the saga can rest easy: State of Decay 3 is still on track and moving forward.

State of Decay 3 is safe from this round of cancellations, for those asking me.

— Jez (@JezCorden) July 2, 2025