After leaving XBOX, the studio Undead Labs could have become a subsidiary of Splash Damage, according to sources from The Game Business. Their information is also confirmed by sources from Kotaku.
State of Decay 3
It is assumed that Splash Damage wanted to make the purchase with support from the investment firm Emona Capital, but nothing else is known about the failed deal. Neither the value of Undead Labs nor the terms proposed have leaked to the media.
After the deal fell through, the future of Undead Labs was in jeopardy, as Microsoft planned to divest from the studio regardless. Fortunately, it did not come to a shutdown. In September 2026, the developers of State of Decay managed to buy themselves out and now operate independently.
Splash Damage itself was until recently part of a major company—Tencent. It broke away from the Chinese giant exactly a year ago with the help of unnamed private investors and soon began making acquisitions. The studio Gamepires, known for the survival game SCUM, has already come into its possession, with that deal also supported by Emona Capital.