Microsoft's recent restructuring, including 3,200 staff layoffs across the current financial year, has brought forth significant changes for several of its studios, notably Undead Labs, the developer behind the long-awaited State of Decay 3. Announced in August 2013, the game has been in development for seven years, with its fate now hanging in the balance regarding its potential inclusion in Xbox Game Pass.
Xbox CEO Asha Sharma revealed that both Ninja Theory and Undead Labs "have entered terms to join new ownership with funding to complete and grow" their respective franchises, Senua and State of Decay 3. While this ensures the continuation of State of Decay 3's development, it also implies that the game will not be obligated to adhere to "any Xbox-controlling terms," most notably, a launch on Xbox Game Pass.
Microsoft's Bold Move Backfires Big
The exclusion from Xbox Game Pass is a pivotal point for subscribers who have anticipated State of Decay 3 since its announcement, especially given the precedent set by State of Decay 2, which launched day-one on Game Pass in 2018. The first game in the series, released in 2013, predates Game Pass's 2017 launch. The new ownership of Undead Labs, set to be revealed later this summer, will have the final say on the game's distribution strategy.
| Metric | Value |
|---|---|
| State of Decay 3 announcement date | August 2020 |
| State of Decay 2 release year | 2018 |
| State of Decay 1 release year | 2013 |
| Xbox Game Pass launch year | 2017 |
This development comes amidst a challenging period for Xbox Game Pass, which has experienced an eight-month decline in subscribers, culminating in the shedding of "millions of subscribers" as disclosed by Chief Strategy Officer Matthew Ball in June. Look — this decline was partly attributed to substantial price increases implemented in October, prompting a partial price cut in April as Microsoft sought to "reset" the service, as clarified by Asha Sharma in an interview with Bloomberg.
State of Decay 3's Shocking Day One Omission
The potential absence of State of Decay 3 from Xbox Game Pass underscores the service's current volatility. After losing millions of subscribers following the October price hike, Microsoft's decision to cut prices in April aimed to stem the decline. But the service's current subscriber count remains unclear. For fans of the State of Decay series, this means considering alternative purchase options, a significant shift from the convenience of day-one access offered by Game Pass.
"Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3," stated Asha Sharma, highlighting the financial commitment to these projects despite the change in ownership. Meanwhile, Matthew Ball's admission that Game Pass "shed millions of subscribers" painted a dire picture before the price adjustment. Sharma later noted the company was "able to reset Game Pass after an eight-month decline," indicating a cautious optimism about the service's future.
A $100M Gamble That Could Ruin Xbox
"Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3."
Asha Sharma, Xbox CEO
"able to reset Game Pass after an eight-month decline."
Asha Sharma, Xbox CEO (via Bloomberg)
"shed millions of subscribers."
Matthew Ball, Chief Strategy Officer
State of Decay 3's Shocking Xbox Exclusion
As the gaming community awaits the reveal of Undead Labs' new ownership later this summer, fans of State of Decay 3 are left with uncertainty regarding the game's release strategy. The series, with its roots dating back to 2013, has a dedicated following that has waited patiently for the next installment. The question now is whether this patience will be rewarded with convenient access via Game Pass or if alternative purchase methods will be necessary.
The situation also reflects the broader challenges faced by Xbox Game Pass, from subscriber growth concerns to the balancing act of pricing and value proposition. As Microsoft navigates this "reset," the inclusion or exclusion of high-profile titles like State of Decay 3 will be closely watched as indicators of the service's direction and appeal to both existing and potential subscribers.



