Undead Labs Confirms Significant Layoffs Post-Xbox Independence

Undead Labs, the developer behind the State of Decay franchise, has confirmed substantial workforce reductions after transitioning away from direct Xbox ownership.

The top 3

  1. Shift to Independent Studio Model: The layoffs follow a strategic restructuring where Undead Labs moved from being a first-party Xbox Game Studios subsidiary to an independent operation.
  2. Impact on State of Decay 3: Despite the staff departures, the studio maintains that active development on their flagship title, State of Decay 3, continues as a priority. State of Decay 3
  3. The Microsoft-Xbox Studio Downsizing Trend: This event marks another instance of Microsoft restructuring its gaming portfolio, following earlier 2024 cuts at Activision Blizzard and ZeniMax. Microsoft

Sources

Open the full topic