As part of this week’s reorganization, one stage of Xbox’s reset, Undead Labs has gone independent from the stable of studios under the Xbox umbrella. However, despite this development, the studio also confirmed that it’s laid off staff following this change
The studio confirmed the layoffs in a LinkedIn post, saying, “Unfortunately, today we are also saying goodbye to a significant number of our colleagues. It’s difficult to reach this moment knowing that not everyone who helped get us here gets to make the rest of the journey with us.”
Undead Labs follows in the footsteps of Double Fine and Compulsion in going independent, confirming that it’s now employee-led. The studio has confirmed that State of Decay 3 is still in development despite the years of dormancy. Fellow studios Arkane and Ninja Theory appear to be headed towards full closure instead, with the latter having failed to secure a buyer despite two attempts.
Philip Holt, Undead Labs’ studio head, said in a statement, “Independence brings us closer to our community and lets us focus on what matters most: making the best games we can and earning the continued support of the people who choose to spend their time with us. State of Decay exists because millions of players have made that choice over the years, and we’re dedicated to honoring their trust.”