Undead Labs Reflects on Independence and State of Decay 3 Development Challenges
- Undead Labs has shifted focus following its independence from Xbox and plans changes to State of Decay 3 due to layoffs.
- Studio head Phillip Holt noted a clearer vision for the game and emphasized its continued development progress.
- State of Decay 3 is set for a 2027 release and will be available on Game Pass from launch.
Undead Labs, the developer of State of Decay, has publicly discussed its recent transition to independent operations after leaving Xbox last month, stating the need to implement changes to State of Decay 3 following a series of layoffs. Studio head Phillip Holt made these remarks during an interview with The Game Business.
“We’re pretty close to finishing this game,” Holt expressed, highlighting significant content and contributions from alpha players. He acknowledged that while changes are necessary due to personnel departures, the game’s scope remains intact.
The current projected release date for State of Decay 3 is “2027,” a timeline announced this summer, providing Undead Labs with flexibility. The game was first revealed in 2020 but has faced scrutiny due to its lengthy development progress.
“I was a little worried about getting swallowed up or divested before we had a chance to present to the world what we were working on” -Phillip Holt
Regarding the extended development timeline, Holt commented, “If you measure it from when State of Decay 2 shipped, yeah, we’re approaching eight years.” Development on the new title did not significantly progress until 2022 or 2023, with Holt clarifying that although a small team was involved prior to that period, resources were limited.
The early announcement of State of Decay 3 was motivated by fears of being absorbed into a larger corporate structure, as seen during Microsoft’s acquisition spree that included other studios like Ninja Theory and Compulsion Games. Holt stated, “I didn’t think Microsoft was done being acquisitive,” which prompted him to secure the game’s visibility early through an announcement and a trailer showcasing the team’s vision.
Despite being considered for divestiture during Xbox’s restructuring this summer, a buyout deal did not materialize. Holt noted many parties showed interest, which led him to propose a management buyout for Undead Labs that Microsoft approved.
While he refrained from disclosing the specifics of the layoffs, Holt expressed deep empathy, stating, “I would hate to reduce the impact to those individuals to a number or statistic.” However, he assured that the studio possesses the necessary resources to advance State of Decay 3, marking a clearer, more focused mission moving forward.
“Inside of a larger company, you serve multiple objectives,” Holt explained. “Now it’s just: make the best possible game,” emphasizing a newfound connection to the player audience without corporate oversight.
State of Decay 3 is confirmed to launch on Xbox Game Pass on its release day, and Holt commended the subscription service for helping the series achieve a player base of 25 million. “I don’t know that we’d be in the place we are today if not for the Game Pass audience,” he remarked. “Even today, we have several thousand people coming through the door every day.”
Dom had the opportunity to play State of Decay 3, affirming Holt’s positive outlook on the game’s status and indicating further detailed coverage may be forthcoming.
News Courtesy of Eurogamer
