Undead Labs Goes Indie: Layoffs Hit, State of Decay 3 Still Coming

Undead Labs confirms it's now an independent studio, has undergone layoffs, and is still working on State of Decay 3.

Remember when Microsoft was reportedly looking to sell off Undead Labs back in July? Well, it looks like the studio has now made some big changes. Undead Labs has confirmed that it is now an independent studio, that it has undergone layoffs, and that development on State of Decay 3 continues.

So what exactly does this mean? For starters, Undead Labs is no longer under the Microsoft umbrella. The studio, known for the State of Decay series, has struck out on its own. But that independence comes with a cost: layoffs have hit the team. It's always tough to hear about developers losing their jobs, especially in an industry that's already seen so many cuts this year.

But here's the good news: State of Decay 3 is still in the works. The game was originally announced as a multiplayer experience, and it seems that's still the plan. Undead Labs isn't abandoning the project, even as they navigate this major transition. That's a relief for fans who have been waiting for a proper follow-up to State of Decay 2.

If you've been following the saga, you'll remember that back in July, reports suggested Microsoft was considering selling off the studio. Now, it appears that's come to pass in some form. Undead Labs is indie, but they're not out of the fight. They're still committed to the zombie survival franchise that put them on the map.

Of course, going independent isn't easy. Without Microsoft's deep pockets, the studio will have to be more resourceful. Layoffs suggest they're already tightening their belts. But the fact that State of Decay 3 is still in development is a positive sign. It means the team believes in the project and is pushing forward.

For players, this is a mixed bag. On one hand, you might worry about the game's quality or timeline now that the studio is smaller and independent. On the other hand, independence could give Undead Labs more creative freedom. They won't have to answer to Microsoft's corporate overlords, which might lead to a more focused, passionate game.

We'll have to wait and see how this all plays out. But for now, Undead Labs is alive and kicking, and State of Decay 3 is still shambling toward release. What do you think about this news? Are you still excited for State of Decay 3? Let us know in the comments.