Key information
Undead Labs head Holt revealed that State of Decay 3 was announced early in 2020 because of worries that the developer might get swallowed up or divested by Xbox before showing their project to the public.
Holt noted that Microsoft acquired Undead Labs back in 2018 alongside several other studios. During the 2020 showcase, only a very small team was actually working on the upcoming zombie title, with main development picking up later in 2023.
The studio head worried Microsoft would pivot toward purchasing larger entities, as demonstrated when Xbox announced plans to acquire Activision Blizzard in 2022. Holt viewed the early trailer as a marker to ensure fans knew the project existed.
State of Decay 2 acted as a testing ground to inform design ideas for the sequel. Despite recent layoffs following Undead Labs going independent last month, the third game remains in active development and will debut day one on Game Pass.
