State of Decay 3 was revealed in 2020 while Undead Labs still had only a small team working on it. Studio head Philip Holt said uncertainty around Microsoft’s acquisition plans helped prompt the early announcement in an interview with The Game Business.
Holt said the studio did not know whether Microsoft had finished acquiring studios or planned to buy more. He worried Undead Labs could be “swallowed up or divested” before it had a chance to present the project. Revealing the game gave players an early look at the team’s vision while the studio’s future at Xbox felt uncertain.
Holt also clarified that an earlier remark suggesting no one was working on the game was not entirely accurate. A very small team had been involved, he said, and Undead Labs had a small team on the game since maybe 2020. Development did not really pick up until 2022 or 2023.
The starting point changes how long the wait looks. State of Decay 2 launched in 2018, and Holt said counting from that release puts the gap at nearly eight years. The first trailer, known for its zombie deer, is another early marker, but development did not move at full pace throughout that stretch.
Undead Labs has since completed its separation from Xbox, with State of Decay 3 now in alpha. The game remains planned for Game Pass and a 2027 release, with a closed beta planned before the end of 2026.
How does knowing the team was small until development picked up in 2022 or 2023 change your view of the wait for State of Decay 3? Follow along as Undead Labs prepares for the planned beta and 2027 launch on X, Bluesky, YouTube, Instagram, Steam, and Telegram.
State of Decay 3
Developed by Undead Labs
Unite to survive: push back the blood plague to reclaim the land's resources and carve out a life in the zombie apocalypse.
- Genre Adventure
- Platforms Xbox Series X|S, PC (Microsoft Windows), PlayStation 5
- Perspective Third person
- Modes Single player, Multiplayer, Co-operative
- Release December 31, 2027
- Publisher Xbox Game Studios
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Age Rating
