As Undead Labs continues development on State of Decay 3 under new ownership, it sounds like the zombie survival sequel won’t be required to be on Xbox Game Pass.
That’s according to Game File, which reported on the studio’s post-Microsoft future after Xbox CEO Asha Sharma announced layoffs that will affect 3,200 staff throughout the current financial year. One of the many headlines emerging from the restructuring news revealed that both Ninja Theory and Undead Labs will soon have new owners.
“Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3,” Sharma said.
It’s a bittersweet update that will see the developer behind the long-in-development third State of Decay game press on as its mysterious new owner takes the reins. Additional information surrounding the change – including the identity of the new owners – was not officially detailed.
Game File said that, according to one of its sources, the new entity overseeing Undead Labs will be revealed later this summer. An exact date for the reveal was not shared.
Microsoft’s deal with the studio failed to outline the details of its Undead Labs deal, but the report stated that, although State of Decay 3 will continue to receive funding, the game will not be obligated to adhere to “any Xbox-controlling terms.” More specifically, State of Decay 3 won’t be required to come to Game Pass.
Game Pass subscribers are among the crowd of gamers who have looked forward to State of Decay 3 since its announcement nearly seven years ago in August 2020. Although the first game in the series launched in 2013, years before Game Pass launched in 2017, its sequel arrived as a day-one launch on the service in 2018. As Undead Labs finds a new home, fans of the series may not want to expect the post-apocalyptic franchise to continue with the new game on Game Pass at launch – or maybe ever.
Buried in the news of an uncertain future for some of the most well-respected developers in the industry was Sharma’s assertion that Game Pass was one of a few angles of the Xbox business that “did not grow at the pace” it expected. In June, chief strategy officer Matthew Ball revealed the gaming subscription service “shed millions of subscribers” in the wake of substantial price increases last October.
Microsoft then announced in April of this year that it would be cutting the price of Game Pass, though not quite to pre-hike prices. Sharma clarified to Bloomberg in June that the company was “able to reset Game Pass after an eight-month decline.” The total number of subscribers the service currently has is unclear.
As the industry comes to grips with a “reset” for Xbox, you can keep up with all of the biggest news with IGN’s live coverage. You can also see how the newly independent Double Fine Productions and Compulsion Games reacted to the changes.
Michael Cripe is a freelance writer with IGN. He’s best known for his work at sites like The Pitch, The Escapist, and OnlySP. Be sure to give him a follow on Bluesky (@mikecripe.bsky.social) and Twitter (@MikeCripe).
