State of Decay 3 to Launch on PS5 and Game Pass as Undead Labs Regains Independence

Undead Labs has regained its independence from Microsoft, a shift that fundamentally alters the development landscape for its upcoming zombie survival title. This corporate restructuring means the studio now controls its own creative direction and business strategy without direct oversight from its former parent company. Players can expect a more autonomous approach to game design and community engagement as the studio navigates this new era. The independence allows Undead Labs to focus on long-term sustainability and direct relationships with its player base.

Undead Labs independence allows State of Decay 3 to break Xbox exclusivity for PS5

The studio’s first major project under this new structure is State of Decay 3, which will launch day-one on Xbox Game Pass. This commitment ensures that the game remains accessible to the large subscriber base that has supported the franchise for years. Microsoft has maintained its support for the title despite the change in studio ownership, highlighting the value of the partnership. The game will also break the series' long-standing Xbox exclusivity by releasing on PlayStation 5 for the first time in the franchise's history.

State of Decay 3 is targeting a launch next year, with playtesting scheduled to begin in the coming months. This timeline gives the independent studio time to refine the game based on community feedback before the full release. The inclusion of PlayStation 5 marks a significant expansion of the game's potential audience beyond the Xbox ecosystem. These details confirm that the game is still in active development and moving toward a public release.

Philip Holt, Studio Head of Undead Labs, emphasized that independence brings the team closer to the community and allows them to focus on making the best games possible. He expressed gratitude for the years spent as part of Xbox and acknowledged Microsoft's role in the State of Decay story from the beginning. The studio remains dedicated to honoring the trust of the millions of players who have supported the franchise over the years. This statement underscores the studio's commitment to its players despite the corporate changes.

We've been tracking State of Decay 3 closely — see our earlier coverage on State of Decay 3 Breaks Xbox. The confirmation of a PS5 release and a Game Pass launch provides concrete details for fans waiting for the next installment. The studio's independence marks a new chapter for Undead Labs, but the core mission of serving the zombie survival genre remains unchanged.