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    Home » State of Decay 3 Reportedly At Risk Of Cancellation As Buyer Sought Developer Undead Labs
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    State of Decay 3 Reportedly At Risk Of Cancellation As Buyer Sought Developer Undead Labs

    Zach BarbieriBy Zach BarbieriJune 30, 2026No Comments3 Mins Read
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    Amid multiple cancellations and closures at Xbox following Asha Sharma’s “reset”, there is now growing concern for the long-awaited zombie survival game State of Decay 3. This follows reports overnight that have suggested that the developer behind the title, Undead Labs, is also under threat of closure as Microsoft seeks a buyer for the company. Publication Gamesbeat reported that work is being done behind the scenes to find a buyer for the studio, which is based in Seattle, Washington, a report backed up by Windows Central. Should a buyer not be found, State of Decay 3 is at risk of cancellation, with the studio following suit.

    Undead Labs is the latest studio to have rumors surrounding it. Studios such as Compulsion Games and Double Fine, more artistic developers rather than financially successful, appear to be at risk of closure as well. Another developer, Ninja Theory, showcased their next game, Senua, during the most recent Xbox Games Showcase, during which internally the studio was already at risk, with rumors suggesting the showcase was meant to entice buyers for the studio. Regardless of the outcome, hundreds of jobs are at risk.

    Similar to Senua, State of Decay 3 was also showcased during the Xbox Games Showcase after being absent for years. There is a possibility that the same thinking was employed here, hoping a new showing of the title would encourage the sale of the studio. According to reports, Ninja Theory was completely unaware of these plans. During the showcase, State of Decay 3 was announced with a release date of 2027, and with a PlayStation 5 version in development as well.

    This July marks six years since the title was initially announced, but with no official release date, some fans were left upset. Currently, the title is undergoing playtests, which have given us a lot of new looks at the title overall. Players can still put their names down on the waiting lists if they are interested in surviving the undead threat. There is a possibility that all of this will be for naught, but additional sign-ups could help bolster interest in the game either internally or externally for a potential buyer. It should be noted that nothing official has been stated on these closures by Xbox, with any actions they plan to take expected to come after the close of their fiscal year on June 30th.

    Remember to follow us on Twitter, Facebook, and Bluesky to keep up to date on everything we have going on!

    Microsoft State of Decay 3 Undead Labs Xbox
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    Enjoyer of Final Fantasy, Cyberpunk, and Ghost of Tsushima to name a few. Currently waiting to doom society in Civilization VII. Twitter: https://x.com/GirlBossGamer Blusky: https://bsky.app/profile/dreadedgirlboss.bsky.social

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