Undead Labs Becomes Employee-Owned but Confirms…

State of Decay developer Undead Labs is officially independent again, completing its separation from Microsoft and becoming an employee-owned studio. That would normally be the sort of feel-good industry story involving celebratory cake and somebody dramatically cutting an imaginary corporate umbilical cord. Unfortunately, the transition also includes what the studio describes as a significant number of layoffs. Undead Labs says the reductions were necessary as it reorganises for independent operation. Development of State of Decay 3 continues, with the game currently in alpha and a closed beta targeted before the end of 2026. The studio is aiming for a 2027 release across Xbox, PC and PlayStation, while Microsoft will still publish the game and offer it on Game Pass from day one. The arrangement is therefore less a clean divorce and more an unusually amicable separation where everyone still shares the Netflix account. Employee ownership could give Undead Labs greater control over its future projects and business decisions, but the accompanying job losses underline how difficult independence can be when a studio leaves the financial shelter of a platform holder. State of Decay 3 remains alive, then, although its developer enters this next chapter smaller, independent and with rather more riding on the success of its zombie apocalypse.

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Today's milestone coverage reflects verified studio briefings, patch deployments, and direct publisher schedules as of September 23, 2026. Because playtest availability, server maintenance windows, and launch updates may evolve during active development cycles, players are encouraged to check official studio channels for real-time announcements.

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Date: September 23, 2026. - Category: Industry. - Primary subject: Undead Labs Becomes Employee-Owned but Confirms Significant Layoffs During the Transition.

Q: What is the primary development in Undead Labs Becomes Employee-Owned but Confirms Significant Layoffs During the Transition? A: State of Decay developer Undead Labs is officially independent again, completing its separation from Microsoft and becoming an employee-owned studio. That…

Q: Where can readers follow related GameForceAsia coverage? A: Track our continuous news stream at /news and explore upcoming hardware and title schedules on /release-radar.