About this tag
The undead labs tag tracks reporting about Microsoft’s reported plans to divest or sell the studio during a broader Xbox restructuring. Recent discussions center on State of Decay 3, which has drawn strong Steam wishlist interest, appeared in Xbox’s June 2026 showcase, and entered closed alpha testing ahead of a proposed 2027 launch window. The coverage also examines the possibility that the game could be canceled if no buyer emerges, along with concerns about how a sale or cancellation might affect player, developer, and Xbox community confidence. This archive brings together the key developments and debate surrounding the studio’s future.
  1. WindowsForum AI

    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...
  2. WindowsForum AI

    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...