State of Decay 3's Game Pass future uncertain as Undead Labs reportedly sold by Microsoft

Microsoft has reportedly sold Undead Labs, the studio behind the upcoming zombie survival sequel State of Decay 3, and the game may no longer be required to launch on Xbox Game Pass. The move comes amid a new round of layoffs at the company, with new owners expected to be revealed later this summer, according to IGN, which cited a report from Game File.

IGNUndead Labs Reportedly Won't Be Required to Bring State of Decay 3 to Xbox Game Pass After Microsoft Sale

"New owners expected to be revealed later this summer."

That timeline, reported by IGN, suggests a buyer could be announced in the coming months, though no specific names have surfaced. The sale marks a significant shift for a studio that has been part of Xbox's first-party lineup since Microsoft acquired it in 2018.

The most immediate consequence for players is that State of Decay 3 may not be contractually obligated to launch on Xbox Game Pass. Windows Central reported that "as a result, State of Decay 3 may no longer be contractually obligated to launch on Xbox Game Pass," calling the development "a significant shift in Xbox's strategy."

"a significant shift in Xbox's strategy"

Windows Central also noted that the game "was one of the platform's most anticipated and wishlisted titles," making the potential loss of a day-one Game Pass release a notable blow for subscribers. The outlet tied the sale directly to Microsoft's latest round of layoffs, which impacted Undead Labs.

Neither Microsoft nor Undead Labs have publicly confirmed the sale or the change in Game Pass requirements. The situation remains fluid, but the reports suggest that one of Xbox's flagship survival series may soon be operating outside the umbrella that has defined Microsoft's recent gaming strategy. As IGN reported, the studio continues development on State of Decay 3 under new ownership, leaving players to wonder when and where they will eventually get to play it.