Key information
State of Decay 3 was revealed prematurely because of studio leadership anxiety that the developer might get absorbed or sold off before showing their project to the public. Holt noted that they wanted to place a clear marker on the table so the audience would know development was underway.
During a 2020 Xbox showcase, the title was announced two years following the launch of State of Decay 2. While a tiny crew was assigned to the project in 2020, full development did not accelerate until 2023. The reveal trailer functioned as a mission statement, though the actual team size was minimal at the time.
The apprehension stemmed from Microsoft's acquisition strategy after buying Undead Labs in 2018 alongside other developers. Holt feared Microsoft would transition from purchasing smaller studios to massive companies, pointing to Xbox announcing plans to buy Activision Blizzard in 2022.
Design work for the upcoming sequel drew heavily from post-launch updates for State of Decay 2, which served as a testing ground for new concepts. Despite recent studio layoffs following Undead Labs going independent last month, the game stays in active production and will arrive day one on Game Pass.
