Upcoming game from Undead Labs
IGN editor Michael Higham went hands-on with an early alpha build of State of Decay 3 at gamescom 2026 and found a survival experience that builds meaningfully on the series' fundamentals. The 30-minute demo showcases improved gunplay, deeper character systems, and expanded base management mechanics. A closed playtest is scheduled for late 2026 ahead of a 2027 release on Xbox Series X|S, PlayStation 5, and PC.
Compulsion Games now appears as the publisher of South of Midnight on Steam instead of Xbox Game Studios, marking the apparent completion of the studio's independence. The change was spotted by indie developer Michael Klamerus on Bluesky, while other former Xbox studios still show Microsoft as publisher on the platform.
State of Decay 3, the upcoming survival horror game from Undead Labs, may not launch on Xbox Game Pass as previously promised. This reversal could impact player expectations and the game's accessibility. The uncertainty surrounding its Game Pass inclusion has left fans wondering about the title's release strategy.
State of Decay 3, originally slated for a Game Pass day-one launch, may no longer join the service due to Microsoft's sale of developer Undead Labs. The game's future on the platform hinges on a new deal between Xbox and the studio's undisclosed buyer. Scheduled for 2027 on PC, PS5, and Xbox Series X/S, the game's launch plans have been thrown into uncertainty.
Xbox Game Pass, a cornerstone of Microsoft's gaming strategy, has drastically underperformed, boasting only 30 million subscribers instead of the projected 77 million. This shortfall, coupled with significant layoffs and studio closures, prompts a reevaluation of the service's model. The future of Xbox's first-party titles on Game Pass hangs in the balance.
State of Decay 3, in development for seven years since its 2020 announcement, may not launch on Xbox Game Pass due to Undead Labs' impending transition to new ownership. This development follows Microsoft's layoffs affecting 3,200 staff and the studio's exit from Xbox's control. Fans awaiting the game since its announcement in August 2020 may need to consider alternative access methods.
Microsoft's latest round of layoffs includes spinning off Double Fine Productions, Compulsion Games, Ninja Theory, and Undead Labs from Xbox, with Arkane Lyon exploring strategic options. The affected studios will retain or receive support for their IP and in-development games. This move is part of Xbox's "most significant restructure" in its history, impacting approximately 3,200 employees.
Xbox Series X/S now features an 'EXCLUSIVE' label on console exclusives, such as the upcoming Gears of War: E-Day, set to launch on October 6. This move aims to clarify exclusivity amid a case-by-case approach, excluding big multiplayer and live-service games. The label highlights titles exclusive to Xbox consoles but may still release on PC.
Xbox's June 7 Showcase promises to be its biggest in years, celebrating the console's 25th anniversary with expected reveals of State of Decay 3 and Clockwork Revolution. The event may also clarify Gears of War: E-Day's exclusivity status amid rumors of a last-minute pivot to Xbox exclusivity. Persona 6's anticipated reveal could further solidify Xbox's growing partnership with Sega.
State of Decay 3's reveal trailer showcased a concept, not a game. No zombie deer will appear, but new features await in the alpha playtest.
No zombie deer in State of Decay 3, but you'll craft unique traps instead. Get ready to turn a tea kettle into a zombie-attracting bomb.
The State of Decay 3 trailer misled fans about actual gameplay, sparking disappointment and calls for more transparency from developers.
