Undead Labs Seeks Funding for State of Decay 3 as Xbox Weighs 110 Job Cuts
Updated
Updated · Push Square · Jun 29
Undead Labs Seeks Funding for State of Decay 3 as Xbox Weighs 110 Job Cuts
3 articles · Updated · Push Square · Jun 29
Summary
Undead Labs has joined the list of Xbox studios seeking outside investment, with State of Decay 3 reportedly at risk as Microsoft reviews cuts ahead of early July.
GamesBeat said Microsoft could close multiple studios if no buyers emerge after the June 30 quarter-end, with Undead Labs, Double Fine, Compulsion and Ninja Theory all in play.
State of Decay 3 appears relatively advanced despite the uncertainty: the game was recently confirmed for PS5, and pre-alpha footage shared with YouTubers has drawn strong online interest.
The studio's search reflects broader pressure inside Xbox, where even teams unlikely to be sold or shut still face heavy layoffs as Microsoft tries to slim a bloated games business.
Microsoft has not commented on the reports, while recent remarks from Satya Nadella and incoming Xbox chief Asha Sharma have underscored demands for better monetization and a division-wide reset.