Microsoft is reportedly restructuring its gaming division, a move that places the development studio behind State of Decay 3 in the crosshairs of potential closure. Undead Labs, the Seattle-based team responsible for the upcoming zombie survival sequel, is currently searching for a buyer to secure its future. This uncertainty affects approximately 110 employees whose jobs are at risk if the studio cannot find a new owner. The situation highlights the volatility facing game developers as major publishers consolidate their operations and cut costs.
Seattle studio searches for buyer as 110 jobs remain at risk
The studio in question has been working on State of Decay 3 since its initial announcement in 2020. Undead Labs recently showcased the game during the Xbox Game Showcase, demonstrating its progress to the public. Microsoft Xbox CEO Asha Sharma confirmed that the company is in the process of resetting its games business. This corporate shift has led to media reports suggesting that multiple studios, including Undead Labs, are facing shutdowns.
The potential loss of Undead Labs would halt the development of a title scheduled for release in 2027. State of Decay 3 is planned to launch on PlayStation 5, Xbox Series consoles, and PC. The game represents a significant investment for Microsoft, given its multi-platform strategy and the years of development already completed. If the studio closes, the fate of this specific project becomes unclear without a new publisher or developer to take over.
This report follows similar news regarding other studios such as Compulsion Games, Double Fine, and Ninja Theory. These closures signal a broader trend of consolidation within the Xbox gaming division. Players and industry observers are watching closely to see if any of these studios can be saved through acquisition. The outcome will determine which games continue development and which are cancelled or moved to other teams.
Source: VideoGameChronicles
