Following its regained independence from Xbox last month, Undead Labs is undergoing a series of changes, particularly with its upcoming game, State of Decay 3. This development comes in the wake of layoffs that have impacted the studio’s strategic direction.
Adjusting Post-Independence
Phillip Holt, the head of Undead Labs, shared insights into the studio’s shifted focus during an interview. “We don’t have a ‘boss’ now except for our audience,” he noted, explaining why the cooperative zombie survival game seems to be taking a long time in development. Holt also confirmed the game is nearing completion and that recent layoffs have necessitated alterations in the project’s execution, although he assured that these changes won’t significantly alter the game’s scope.
Development Timeline and Challenges
State of Decay 3, despite having a vague release timeline set for 2027, was first introduced to the public back in 2020. The prolonged development period has raised questions, but Holt emphasised that the team has remained small until picking up momentum in 2022 or 2023. Holt addressed concerns regarding the timeline and clarified that significant development work on the game only began in earnest a few years after its initial announcement.
Strategic Early Announcement
Holt explained why Undead Labs revealed the game so early. He cited concerns over Microsoft’s 2018 acquisitions spree, which included Undead Labs and other studios like Ninja Theory and Compulsion Games. Holt expressed apprehension about being absorbed into Microsoft’s larger gaming division without first announcing State of Decay 3 to the world. The early announcement served as a strategic move to stake the studio’s claim on its creative vision.
Management Buyout and Restructuring
When Xbox announced restructuring plans this summer, Undead Labs was flagged for potential divestiture. However, a management buyout, similar to what other studios pursued, ultimately allowed Undead Labs to transition into an independent entity once more. Holt declined to detail the number of layoffs that occurred, framing it in personal terms due to the emotional impact on those affected. Nevertheless, he maintained confidence that the company is well-equipped to bring State of Decay 3 to market.
Focused on Audience Success
Operating independently positions Undead Labs to focus singularly on crafting a quality game, with Holt emphasising a direct connection to their audience as a driving force. While State of Decay 3 is set to launch on Game Pass from day one, Holt credited the subscription service for the franchise’s significant audience reach, attributing its 25 million player base partly to Game Pass’s exposure.
Reporting based on coverage first published by eurogamer.net.