American video game development company
Undead Labs LLC is an independent American video game developer based in Seattle, Washington. The company was founded in November 2009 by Jeff Strain and developed the State of Decay series. In 2018, Undead Labs became part of Microsoft Studios. In 2026, Undead Labs separated from Microsoft and became independent as an employee-owned studio.
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Microsoft has initiated a new round of 268 layoffs within its Xbox division as part of an ongoing business restructuring. The reorganization includes shifting management of the Halo franchise to Activision and merging several internal studios.
Undead Labs became 100 percent independent at the cost of layoffs.
According to GameSpot, Undead Labs has reached an agreement with a new publisher to continue work on State of Decay 3, and Microsoft confirms the game will launch on Xbox Game Pass day-one when ready. The studio says it is now an independent, employee-owned development studio.
Microsoft has initiated a new round of 268 layoffs within its Xbox division as part of an ongoing business restructuring. The reorganization includes shifting management of the Halo franchise to Activision and merging several internal studios.
Undead Labs became 100 percent independent at the cost of layoffs.
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