Undead Labs faces challenges reshaping State of Decay 3 post-Xbox split, as it grapples with layoffs and autonomy.
Today’s gaming news spotlight shines on Undead Labs, the studio behind the State of Decay series, as it navigates a turbulent period following its split from Xbox. According to a Eurogamer report, the studio is facing the challenging task of restructuring State of Decay 3 in the aftermath of layoffs resulting from their recent re-acquisition of independence from Microsoft. The departure has positioned Undead Labs in a reflective stance, as they reassess their development roadmap and tackle the resource constraints that come with being an independent developer once again.
This split from Xbox appears to be part of a larger trend of upheaval and uncertainty within the gaming industry. In related news, Kotaku reports on similar tension at The Coalition, the studio behind Gears of War, where questions about potential layoffs loom, even as promises of expedited development on the next installment in the series are made. Such organizational changes often indicate shifting priorities or broader strategic restructuring, possibly influenced by the current economic climate.
Meanwhile, layoffs are impacting other studios as well. Bit Reactor, the team behind the anticipated Star Wars Zero Company game, is working to reverse furloughs caused by “unexpected business developments.” While the full implications of these staffing changes remain unclear, it’s evident that many studios are feeling pressure possibly due to market fluctuations or evolving consumer demands.
Industry Buzz: Awards and Sequels
Beyond restructuring woes, the industry is also buzzing with awards and sequel announcements. The episodic superhero game Dispatch remains a favorite at The Game Awards, being eligible for “Game of the Year” for an unprecedented second year, as described in Polygon’s report. Such repeat eligibility suggests the game has significant staying power in a competitive landscape, signaling healthy player engagement or perhaps delayed new releases across the genre.
In sequel news, Star Wars enthusiasts have something to look forward to. Both Ezra Bridger and the iconic antagonist Grand Admiral Thrawn are set to return in a new Star Wars installment projected for 2027. While further specifics about the storyline are sparse, Polygon provides fans a glimpse into the anticipated narratives to unfold beyond the Disney Plus series.
For Gamers: What’s Available Now
Finally, PlayStation Plus subscribers can enjoy October’s selection of free games, which includes “F1 25,” “Hunt: Showdown 1896,” and “Earth Defense Force: World Brothers 2,” as detailed by GameSpot. These offerings cater to a wide range of player interests from strategic multiplayer experiences to thrilling racing escapades.
In summary, the gaming industry appears to be undergoing a significant period of transition, with studios redefining project trajectories amidst operational changes, while still delivering exciting new content and experiences for players.

























