{"id":770325,"date":"2026-06-30T04:35:16","date_gmt":"2026-06-30T04:35:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/770325\/"},"modified":"2026-06-30T04:35:16","modified_gmt":"2026-06-30T04:35:16","slug":"state-of-decay-3s-undead-labs-named-as-another-xbox-studio-facing-closure","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/770325\/","title":{"rendered":"State of Decay 3\u2019s Undead Labs named as another Xbox studio facing closure"},"content":{"rendered":"<p>Undead Labs is the latest studio to be named as part of potential Xbox closures, weeks after it showed State of Decay 3 during the Xbox Games Showcase.<\/p>\n<p>Earlier this month, <a class=\"link-relationship\" title=\"Platforms &gt; Xbox [11,301 articles]\" href=\"https:\/\/www.videogameschronicle.com\/platforms\/xbox\/\" rel=\"nofollow noopener\" target=\"_blank\">Xbox<\/a> CEO <a class=\"link-relationship\" title=\"People &gt; Asha Sharma [44 articles]\" href=\"https:\/\/www.videogameschronicle.com\/people\/asha-sharma\/\" rel=\"nofollow noopener\" target=\"_blank\">Asha Sharma<\/a> revealed that <a class=\"link-relationship\" title=\"Companies &gt; Xbox Game Studios (Microsoft) [3,892 articles]\" href=\"https:\/\/www.videogameschronicle.com\/companies\/microsoft\/\" rel=\"nofollow noopener\" target=\"_blank\">Microsoft<\/a> was in the process of \u2018resetting\u2019 its games business, which media reports indicated could <a class=\"link-internal\" href=\"https:\/\/www.videogameschronicle.com\/news\/xbox-studios-compulsion-double-fine-and-ninja-theory-facing-closure-its-claimed\/\" rel=\"nofollow noopener\" target=\"_blank\">result in significant job losses<\/a>\u00a0and the closure of multiple studios.<\/p>\n<p>Initially, the developers at risk of being shut down were named by <a target=\"_blank\" rel=\"noopener nofollow\" class=\"link-external\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-06-15\/studios-in-microsoft-s-xbox-division-brace-for-closures?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc4MTU1NDUzNiwiZXhwIjoxNzgyMTU5MzM2LCJhcnRpY2xlSWQiOiJUR09XOTRLSVAzTE0wMCIsImJjb25uZWN0SWQiOiJCMUVBQkI5NjQ2QUM0REZFQTJBRkI4MjI1MzgyQTJFQSJ9.qu5M4E4sve-8r60rL_e-Xv-LrGJvIGgWiKLxMitTl5A&amp;leadSource=uverify%20wall\">Bloomberg<\/a>, and corroborated by VGC\u2019s own sources, as\u00a0<a class=\"link-relationship\" title=\"Companies &gt; Compulsion Games [36 articles]\" href=\"https:\/\/www.videogameschronicle.com\/companies\/compulsion-games\/\" rel=\"nofollow noopener\" target=\"_blank\">Compulsion Games<\/a>,\u00a0<a class=\"link-relationship\" title=\"Companies &gt; Double Fine [103 articles]\" href=\"https:\/\/www.videogameschronicle.com\/companies\/microsoft\/double-fine\/\" rel=\"nofollow noopener\" target=\"_blank\">Double Fine<\/a>, and\u00a0<a class=\"link-relationship\" title=\"Companies &gt; Ninja Theory [131 articles]\" href=\"https:\/\/www.videogameschronicle.com\/companies\/microsoft\/ninja-theory\/\" rel=\"nofollow noopener\" target=\"_blank\">Ninja Theory<\/a>.<\/p>\n<p>The studios were said to have entered negotiations to go independent in an attempt to avoid being closed, sources said.<\/p>\n<p>Now, a fourth studio at risk has been named by <a target=\"_blank\" rel=\"noopener nofollow\" class=\"link-external\" href=\"https:\/\/gamesbeat.com\/cwa-represented-workers-at-xbox-criticize-microsoft-management-and-pending-layoffs\/\">Games Beat<\/a> as <a class=\"link-relationship\" title=\"Games &gt; State of Decay 3 [21 articles]\" href=\"https:\/\/www.videogameschronicle.com\/games\/state-of-decay-3\/\" rel=\"nofollow noopener\" target=\"_blank\">State of Decay 3<\/a> developer <a class=\"link-relationship\" title=\"Companies &gt; Undead Labs [30 articles]\" href=\"https:\/\/www.videogameschronicle.com\/companies\/microsoft\/undead-labs\/\" rel=\"nofollow noopener\" target=\"_blank\">Undead Labs<\/a>. According to the publication, the Seattle-based studio is also searching for a buyer, with around 110 jobs at stake if it fails to do so.<\/p>\n<p>Other divisions, such as <a class=\"link-relationship\" title=\"Companies &gt; Blizzard Entertainment [544 articles]\" href=\"https:\/\/www.videogameschronicle.com\/companies\/activision-blizzard\/blizzard-entertainment\/\" rel=\"nofollow noopener\" target=\"_blank\">Blizzard<\/a>, <a class=\"link-relationship\" title=\"Companies &gt; Bethesda Softworks [901 articles]\" href=\"https:\/\/www.videogameschronicle.com\/companies\/zenimax-media\/bethesda-softworks\/\" rel=\"nofollow noopener\" target=\"_blank\">Bethesda<\/a>, and others, are expected to be hit with percentage layoffs, according to Games Beat. This is likely \u2018the biggest single cut series for Xbox,\u2019 according to its sources.<\/p>\n<p>Undead Labs was acquired by Microsoft in 2018, and in the eight years since, it\u2019s yet to release a new title under Microsoft.<\/p>\n<p>State of Decay 3 was announced back in 2020, with the developer later admitting that its reveal trailer <a class=\"link-internal\" href=\"https:\/\/www.videogameschronicle.com\/news\/the-game-was-in-a-word-document-state-of-decay-3s-2020-announce-trailer-was-just-a-concept-studio-head-says\/\" rel=\"nofollow noopener\" target=\"_blank\">was purely designed to announce that the game was coming<\/a>, because at that point the game was just \u201ca Word document\u201d.<\/p>\n<p>The game <a class=\"link-internal\" href=\"https:\/\/www.videogameschronicle.com\/news\/state-of-decay-3-trailer-release-date\/\" rel=\"nofollow noopener\" target=\"_blank\">finally reappeared at the Xbox Game Showcase this month<\/a>, where it was announced for a 2027 release on <a class=\"link-relationship\" title=\"Platforms &gt; PlayStation 5 [9,374 articles]\" href=\"https:\/\/www.videogameschronicle.com\/platforms\/playstation\/ps5\/\" rel=\"nofollow noopener\" target=\"_blank\">PS5<\/a>, Xbox Series consoles, and <a class=\"link-relationship\" title=\"Platforms &gt; PC [12,557 articles]\" href=\"https:\/\/www.videogameschronicle.com\/platforms\/pc\/\" rel=\"nofollow noopener\" target=\"_blank\">PC<\/a>. That reportedly makes Undead Labs the second studio to have a reveal in this month\u2019s showcase that\u2019s up for closure, alongside Senua studio Ninja Theory.<\/p>\n","protected":false},"excerpt":{"rendered":"Undead Labs is the latest studio to be named as part of potential Xbox closures, weeks after it&hellip;\n","protected":false},"author":2,"featured_media":770326,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[49,48,61],"class_list":["post-770325","post","type-post","status-publish","format-standard","has-post-thumbnail","category-technology","tag-ca","tag-canada","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/770325","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=770325"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/770325\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/770326"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=770325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=770325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=770325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}