State of Decay 3 Lives On: Undead Labs Goes Indie, Game Pass Day-One Confirmed

Undead Labs has become an independent, employee-owned studio and will continue developing State of Decay 3, which will still launch on Xbox Game Pass day one.

Did you think State of Decay 3 was dead in the water after all those Microsoft studio shake-ups? Think again. Undead Labs has just confirmed that the zombie survival sequel is still shambling forward, and it's bringing a big surprise with it.

The studio announced it has become a completely independent, employee-owned game development studio. That means no more Microsoft oversight, but the team isn't abandoning its roots. In a statement, Studio Head Philip Holt said, "We're enormously grateful for our years as part of XBOX and for everything that relationship has made possible." He also noted that Microsoft has been part of the State of Decay story from the very beginning, and the team is proud of what they accomplished together.

But here's the kicker: Microsoft has confirmed that State of Decay 3 will still launch on Xbox Game Pass day one when it's ready. So even though Undead Labs is now flying solo, you'll still be able to jump into the game on day one if you're a Game Pass subscriber. That's a win for fans who were worried the game might get lost in the shuffle.

Speaking of shuffle, this news comes amid a massive restructure across Microsoft Game Studios. Undead Labs isn't the only studio to part ways—Double Fine and Compulsion Games have also found futures away from the Xbox publishing arm. Ninja Theory, unfortunately, hasn't been as lucky; the studio is reportedly on the brink of closure.

The reshuffling doesn't stop there. Halo will now be developed under the guidance of Activision, while Rare and its current title, Sea of Thieves, will follow suit. Obsidian, which is working on a new Fallout, will now report to Bethesda. And Playground Games and Turn 10 are being merged for the future of the Forza franchise. It's a whole new world for Xbox studios.

For State of Decay fans, though, the future looks bright. Undead Labs is now employee-owned, which often means more creative freedom and a team that's truly invested in the project. Plus, the Game Pass day-one launch ensures the game will reach a huge audience right out of the gate. It's a rare bit of good news in an otherwise turbulent time for Microsoft's studios.

So, what do you think? Are you relieved that State of Decay 3 is still coming, or are you worried about the studio going independent? Will you be picking it up on Game Pass day one? Let us know in the comments!