Overview
- Multiple outlets reported on June 29–30 that Undead Labs, the Seattle studio making State of Decay 3, has been added to a list of Xbox studios being shopped for buyers or at risk of closure.
- GamesBeat, Windows Central, VGC and other outlets say roughly 110 jobs at Undead Labs could be affected if no buyer or management buyout is found.
- The reports place Undead Labs alongside Double Fine, Compulsion Games and Ninja Theory as studios Microsoft is evaluating as part of a broader cost‑cutting plan under new Xbox leadership.
- Sources and union statements say decisions are expected shortly after Microsoft’s fiscal quarter closes on June 30, with possible outcomes including outright sale, spin‑out to independent management, or studio closure and layoffs.
- Industry coverage notes the wider significance: actions would shrink studios Microsoft acquired in 2018–2019, threaten near‑complete projects such as State of Decay 3, and heighten union and developer concerns about severance and job security.