State of Decay 3 has been a long time in the making, and it’s finally targeting a release in perhaps the most turbulent time in developer Undead Labs’ 16-year history.

Undead leaving Xbox could affect state of decay 3 Game pass launch

Undead Labs joined the Xbox family of first-party studios in 2018 when Xbox went on a big buying spree that saw the likes of Ninja Theory, Playground Games, and Compulsion Games also join an at-the-time thin lineup of Xbox studios. The move was largely celebrated, as Xbox was in dire need of more first-party talent and the first State of Decay was a big Xbox Live Arcade success the generation prior. It’s now been a whole six years since Undead revealed State of Decay 3, and after years of silence, it’s finally aiming to come out next year, in 2027.

It’s safe to say that State of Decay 3 is approaching its long-awaited release at a very rough time. Xbox is undergoing a purge that’s seeing the end of 3,200 jobs, and fellow Xbox studios like Double Fine and Compulsion Games are divorcing from Xbox, setting off on their own like Toys for Bob did several years ago. Undead Labs joins Ninja Theory and potentially Bethesda’s Arkane as a studio that’s in the midst of being sold off by Xbox to another undisclosed company, which could affect whether Xbox Game Pass subscribers will be able to download and play State of Decay 3 the day it comes out.

Undead Labs buyer to be reveled later this year

Prior to Xbox’s reset going into effect, State of Decay 3 was confirmed for a day one release on Xbox Game Pass, just like any other first-party Xbox game. However, now that Undead Labs is set to split from Xbox, that could change. According to Stephen Totilo, Xbox will continue to fund State of Decay 3 through its eventual 2027 release, but it won’t be required to be launched day one into Xbox’s popular subscription service. That decision will be left up to Undead Labs and its new ownership.

As for who Undead Labs’ new owners are, it’s a complete mystery at the moment, and the same is true in Ninja Theory’s case. Totilo mentions that the owners of both former Xbox studios will likely be revealed later in the year, which makes sense considering all these moves are still being freshly made. It will truly be fascinating to see whether Undead decides to put State of Decay 3 out on Game Pass day one, as subscribers and Xbox fans will have been waiting a very long seven years for the game since its initial reveal in 2020. Many would be upset if it were to withdraw its Game Pass promise, but doing so may potentially wind up being a more profitable move for the studio and its new owner. Whatever happens, State of Decay 3 still seems to be on track for its release next year.

Undead Labs just recently started up limited playtesting for State of Decay 3 in May, and a month later the game showed face at Xbox’s Summer Game Fest showcase to announce its 2027 release window. It’s clear that the game will survive this chaotic and controversial Xbox reset; it just might not do so as a day one Game Pass game.

State of Decay 3 is coming to Xbox, PlayStation, and PC in 2027.