Undead Labs Faces Uncertain Future Amid Microsoft Layoff Rumors

It looks like Undead Labs, the studio behind the popular State of Decay franchise, is facing some serious challenges. Word on the street is that Microsoft is gearing up for major layoffs within its Xbox gaming division, and Undead Labs has reportedly found itself in a tight spot, potentially on the chopping block.

According to sources like GamesBeat and Windows Central, once the current fiscal year wraps up on June 30, Microsoft might consider selling off some of its studios, including Undead Labs. This news is particularly shocking given that State of Decay 3, the studio’s upcoming title, had recently been showcased with a new trailer, hinting that it was close to completion. The big question now is whether this game will ever see the light of day if Undead Labs shuts down before its release.

Bloomberg’s Jason Schreier chimed in on the situation, suggesting that while Undead Labs hasn’t been confirmed for closure, it’s certainly a possibility. He mentioned that some studios might even be able to break away and operate independently, which could help save jobs. However, layoffs seem unavoidable in this turbulent time.

As for State of Decay 3, it’s slated to launch on Xbox Series X|S, PlayStation 5, and PC by 2027. But while we await its release, there’s a growing call from developers at various Xbox studios for Microsoft to step up and provide job security amid these layoffs that may be imminent. The future of Xbox itself is also up in the air, with whispers suggesting it could even become its own separate entity.

Additionally, Microsoft recently increased prices for Xbox consoles, and further hikes may be on the horizon as the company pushes for better financial performance. With CEO Satya Nadella emphasizing the need for Xbox to become more profitable, it looks like tough decisions are looming for the gaming giant.