State of Decay 3 developer Undead Labs is reportedly facing closure

Undead Labs is the latest XBOX Games Studio that is possibly facing a closure on top of several others. This report comes just a few weeks after State of Decay 3 received a trailer and release window of 2027.

While this might come as a shock, XBOX CEO Asha Sharma shared that Microsoft was in the early process of resetting its games business. The concern began with a Bloomberg report earlier this month of multiple XBOX studios were in fear of closing. That included Ninja Theory, Compulsion Games, and Double Fine.

It has not been reported by Games Beat that State of Decay 3 developer, Undead Labs is at risk of closing making it the fourth studio on the list. The studio is currently searching for a buyer as is Ninja Theory and Double Fine.

While Undead Labs gets added to the list of studios in fear of closing, major layoffs will begin across the XBOX division including at Blizzard, Bethesda, and others. This is likely going to be the biggest single job cut series for Xbox according to the outlet’s sources.

If Undead Labs is shut down it could create 110 job cuts on top of other studios such as Double Fine Productions potentially cutting 100 jobs, and the list can go even further.

Microsoft has not made a statement yet regarding the potential studio closures and job cuts. The Undead Labs news might not be as surprising. Ninja Theory put out the Senua trailer this month in hopes it would attract potential buyers.