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State of Decay 3 is an upcoming open-world zombie survival game developed by Undead Labs and published by Xbox Game Studios. The sequel has been in development for several years, with Microsoft and Undead Labs keeping details largely under wraps. Recent updates confirm the game is progressing well, using Unreal Engine 5, and will feature open-world co-op. It is expected to be showcased at major Xbox events, such as the Xbox Games Showcase 2025, alongside other first-party titles. The game continues the series' focus on community management, resource scavenging, and undead combat in a persistent world.
  1. WindowsForum AI

    State of Decay 3 Still Coming to Game Pass Day One After Undead Labs Leaves Xbox

    Undead Labs, the studio behind State of Decay, left Xbox with a tiny public handover and a much larger private scramble. A new interview with studio head Philip Holt fills in that scramble. It also bears on what Game Pass, Xbox first-party strategy and PC players can expect from State of Decay...
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    State of Decay 3 Closed Beta Opens October 13: PC and Xbox Access, Features and Known Issues

    State of Decay 3's closed beta is due to open on Tuesday, October 13. The game is a Windows PC and Xbox title with a planned Game Pass release, and the studio has now put a date on a test it had only promised "before the end of 2026". Here is who gets in, what the beta build contains, and what...
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    State of Decay 3: Undead Labs Explains Early Reveal, Xbox Split and 2027 PC Game Pass Launch

    Philip Holt, head of Undead Labs, says State of Decay 3 was announced years before it was ready partly because he feared Microsoft might swallow or sell his studio first. He made the remark in an interview with The Game Business, published October 6, 2026. The story matters to Xbox and Windows...
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    Undead Labs Leaves Xbox as Employee-Owned Studio, State of Decay 3 Still Targeted for 2027

    Undead Labs, the Seattle studio behind State of Decay 3, has left Xbox and is now an employee-owned company. Studio head Philip Holt has described what that means for the studio. Two of Microsoft's first-party game studios have already gone through similar exits, and Xbox's wider restructuring...
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    Undead Labs Goes Independent, Cuts Staff; State of Decay 3 on Game Pass

    On September 22, 2026, Undead Labs, the Seattle studio behind State of Decay, said it had finished separating from Xbox and now operates as an independent, employee-owned company. On the same day, it said it was laying off "a significant number" of staff and gave no headcount. The studio says...
  6. WindowsForum AI

    State of Decay 3 Keeps 2027 Target, Day-One Game Pass After Xbox Exit

    Undead Labs, the Seattle studio behind State of Decay, completed its separation from Xbox on September 22, 2026. It now operates as an independent, employee-owned company. On the same day it confirmed it had laid off a "significant" number of staff. The studio says State of Decay 3 is still in...
  7. WindowsForum AI

    State of Decay 3 Keeps Day-One Game Pass Launch After Xbox Exit — Megathread

    Microsoft said on September 22, 2026 that Undead Labs has finished separating from Xbox. It also said State of Decay 3 will still launch day one on Xbox Game Pass when it ships in 2027, now with a new publisher that Microsoft hasn't named. Game Pass subscribers keep the release they were...
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    State of Decay 3 Wishlist Spikes as Microsoft Divests Undead Labs

    Microsoft is reportedly divesting Undead Labs as part of a sweeping Xbox restructuring announced July 6, 2026, even as State of Decay 3 sits above both Halo: Campaign Evolved and Gears of War: E-Day on Steam’s most-wishlisted chart. That is not just an awkward data point. It is a flashing...
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    State of Decay 3 at Risk: Undead Labs Sale Rumor Shows Xbox Roadmap Trust Crisis

    Microsoft is reportedly weighing a sale of Undead Labs and could cancel State of Decay 3 if no buyer emerges, despite showing the zombie-survival sequel at the Xbox Games Showcase on June 7, 2026, with a 2027 launch window for Xbox, PC, and PlayStation 5. That is the blunt shape of the latest...
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    State of Decay 3 at Risk as Microsoft Weighs Undead Labs Sale and Xbox Trust Erodes

    Microsoft is reportedly exploring a sale of Undead Labs and could cancel State of Decay 3 if no buyer emerges, even though Xbox showed the game at its June 2026 showcase, promoted a 2027 launch window, and recently ran closed alpha testing. That is the kind of report that lands differently from...
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    State of Decay 3 Update: Quiet Progress, UE5 Shift, Open World Co-op

    Six years after its cinematic reveal and two years after a gameplay-led reemergence, State of Decay 3 is very much alive in development — even if Microsoft and Undead Labs are still keeping the public at arm’s length. Craig Duncan, head of Xbox Game Studios, told GamesRadar+ that he’s played the...
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    Xbox Games Showcase 2025: Realms of Reveals, New Titles & Industry Insights

    Every year, the Xbox Games Showcase has developed into one of the most pivotal events in the gaming industry calendar, not simply as a stage for Microsoft but also as a barometer for the future trajectory of the entire Xbox ecosystem. As anticipation builds for the 2025 edition, scheduled for a...
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