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3w ago

Microsoft Finds Buyer for Undead Labs but Will Fund State of Decay 3 Through Release

Reporters say the exit deal frees State of Decay 3 from automatic day‑one Game Pass inclusion.

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State of Decay 3, in my view, had more potential than any upcoming Xbox game.

Overview

  • Microsoft announced Monday that it has arranged a sale for Undead Labs and will continue funding State of Decay 3 until its planned 2027 release.
  • Multiple outlets report the studio’s exit terms remove the automatic obligation to launch the game day one on Xbox Game Pass.
  • If State of Decay 3 does appear on Game Pass it will require a new, separate agreement between Xbox and Undead Labs’ undisclosed new owner.
  • The game remains in active development after limited playtesting and a June showcase, and it ranks highly on Steam wishlists, signaling strong consumer interest.
  • The buyer’s identity has not been revealed and the outcome will shape the game’s distribution, revenue split, and whether future updates tie to Microsoft’s subscription strategy.