# Report Claims State of Decay 3 Developer Undead Labs Could Be Shut Down

> **Open Intelligence Dossier** · First detected: 2026-06-29 21:07 UTC · Category: Technology

## Executive Summary
Reports indicate that Undead Labs, the developer behind State of Decay 3, is potentially facing closure following recent game announcements.

## Intelligence Brief
Multiple reports suggest that Undead Labs is under threat of being shut down. This potential action concerns the studio currently developing the upcoming title State of Decay 3.


Coverage from ixbt.games, Video Games Chronicle, Push Square, and Insider Gaming highlights the studio's status in relation to Xbox operations. These reports emerge shortly after the reveal that State of Decay 3 is intended for release on the PlayStation 5.


Future updates will clarify the operational status of Undead Labs under Xbox. No official confirmation regarding the closure of the studio has been provided by the organizations involved.

## Multi-Source Evidence Table
| Source Outlet | Headline | Verification URL |
|---|---|---|
| Eurogamer | Xbox is reportedly considering closing State of Decay developer Undead Labs | [Source Link](https://news.google.com/rss/articles/CBMigwFBVV95cUxNTlF3WlByMGkyNm56eDNSbmZEbVRWTjU0cnFEVEtPd1FfOXY4d21PREkzM2RnZGZTNW1adGZFcmZfVXZjcU1GM01hS016SDUtSUZPSWlocDdYNGV4dkxNdmZXQ21fU3hzSEhtTmxMSXUyT1ctaFBqb0RzTld0RFUtYjd2RQ?oc=5) |
| ixbt.games | Undead Labs, the studio behind State of Decay 3, is under threat of closure | [Source Link](https://news.google.com/rss/articles/CBMi0AFBVV95cUxQcVZqOWdoWXBfbjVMMEg1U2pGU3hpblVQUTdvbU5vXzBFNlVMeWNGSnE1MFpsVV9OZ1dZWmZIT1U2aDE5eVZqZDFnRmZueFd3cG5QMmgwRGNoVHpuRUhtTjNhajQ4YUFPN0lRbDFSYVNIODZ1SGhxdTZITWdwUEZJUWtiNVZRb0pOZ2Jfajd5aWVvNzdOQjBSZ0FoT2xWY1VObmdDNmtQLXRsS1BJbUpJSlNsb0dWeFlQU2NTaFlYTUg5cThGcHFTVzZkbWhSeVNo0gHWAUFVX3lxTE1YWXVUZ0toQU1kak9pVDdfam54VjdoVHd6aWdpbzdzM29XZ0JGZjdTSXlOTTlTaGlfX25Zc3k1bDJSOTJ1cUtkVXhoSko2X0phVUJFV3p1dzZ2YzhRYkg3R1Z2WWJHRW93dktOTTRsQ05zQ3pRUTJxd1h1eExDaUdpdW0) |
| Video Games Chronicle | State of Decay 3’s Undead Labs named as another Xbox studio facing closure | [Source Link](https://news.google.com/rss/articles/CBMitgFBVV95cUxPNjlCR3ZkVGVTbUFUUUtkaUNzVGQ0Ml91eEhYMS1scmZ6b1d2aXRaTGktVkRDTndOWGxlTm94QllkZE5XcEZZeE1fTzF2UUdOVmNyRGQyNk5jVmJseEN5R2tKQXBsc21PV2Y1ZGRGR2VscXY1eHBUenB0dE5NRGhPa19SaFpIc1N4S1ZoZTN6Zm5YQjU5MzduV1hFUUJzb25SY045NVFGRklSTVRNc242M083akp1dw?oc=5) |
| Push Square | Rumour: State of Decay 3 Dev Also Facing Xbox Axe, Weeks After Game Was Revealed for PS5 | [Source Link](https://news.google.com/rss/articles/CBMixAFBVV95cUxOTWFjOWJMZWprSmVaU1UxeVREOENiTUN2T04tdjlRTExJTW4wdDB5Wm9YWk9Fd3YxV0VReUdSTzBEb1kwWXpJRWk3NUxSSXk2eU1nMzFmVi1hWGw4R0xpNG9RYWstVnczTGp5MEp1VEVkYUp4aVh4aVpzLXJObU1kd21wcklLQV9yWHVWV3hsbWVaWlNsRGYwaEhCalNzbWk5U1dFVENGem5lUnlvemhuSElfRE1fZXhsRzBsbUR3eF9nWTEx?oc=5) |
| Insider Gaming | Report Claims State of Decay 3 Developer Undead Labs Could Be Shut Down | [Source Link](https://news.google.com/rss/articles/CBMioAFBVV95cUxNVVZ3T200Z25lVWxKTzg1Q1FzTVM4bG1LdHdFV21USTA0NVd3eFNmaV9Dd2JDNmNGR1FIZVJZYTJSMHFrRHZfSmpvV2czRXNHZE8zWFhmYmN2R1VoSzNXNXhmNXY4bHNkMWNvTzBlaUhCUlM2ZTNfUzZJY2hVbHVjaFoza0VGdkFnY2hmTEdVYm40SVQyUkRDaVRMeDZhb3dC?oc=5) |

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*Canonical Source: https://pulse.byoviral.com/trend/2026-06-29/report-claims-state-of-decay-3-developer-undead-labs-could-be-shut-down*