We’ve all seen what’s been happening across Xbox over the past few weeks. Layoffs have hit multiple teams, studios are being shut down or being let go, and Microsoft’s gaming division has been going through one of its biggest restructurings in years. Unfortunately, Undead Labs, the studio behind State of Decay 3, is one of the studios affected by those sweeping changes.
So, while the game itself is still in development, its future on Xbox Game Pass is suddenly looking a lot less certain. When State of Decay 3 was first announced, it was positioned as a first-party Xbox exclusive, meaning subscribers to Xbox Game Pass Ultimate and PC Game Pass were expected to get access to the zombie survival sequel on day one at no extra cost. That’s been the standard for nearly every Xbox first-party release in recent years.
However, Microsoft’s recent restructuring has changed the situation. Undead Labs is reportedly no longer operating under the Xbox umbrella after securing a new publishing partner, effectively ending its run as a Microsoft-owned studio. That change could have major implications for State of Decay 3‘s release plans.
Since the studio is no longer first-party, there may no longer be a contractual obligation for the game to launch on Game Pass. In other words, unless a new agreement is reached between Microsoft and the studio’s new publisher, players may have to purchase the game separately when it launches.
Nothing has been officially confirmed yet, so there’s still a chance State of Decay 3 ends up on Game Pass after all. Given how heavily Xbox previously marketed the game as a day-one Game Pass title, Microsoft could still negotiate a deal to keep that promise intact.
Still, until either Xbox or Undead Labs provides an update, the game’s Game Pass status remains up in the air. It’s another reminder of just how much Microsoft’s ongoing shake-up is changing the Xbox ecosystem. What was once a guaranteed day-one Game Pass release is now one of several question marks left behind by the company’s latest restructuring.
For now, fans waiting to return to the zombie-infested world of State of Decay may want to temper their expectations, especially if they were planning to jump in through a Game Pass subscription.


