In the summer, as part of restructuring its gaming division, Microsoft announced plans to sell Undead Labs. The deal was concluded in September. The studio was re-purchased by its own management, but not without some sacrifices.
State of Decay 3
Undead Labs posted on LinkedIn that after parting ways with Microsoft, it was forced to lay off a "significant" number of employees. The exact number affected was not specified.
In its statement, the studio expressed regret over the layoffs. It thanked former employees for their contributions to Undead Labs and encouraged other game companies to consider hiring them.
Later, in a comment to IGN, Undead Labs head Philip Holt added that neither the departure from Microsoft nor the layoffs would impact State of Decay 3. The game is still in development and is set to debut in 2027 on PC, PlayStation 5, and Xbox Series, including availability on Game Pass.