State of Decay 3 may no longer be required on Xbox Game Pass after Undead Labs exits Microsoft

Undead Labs’ departure from Microsoft appears to free State of Decay 3 from an obligation to launch on Xbox Game Pass. On Monday Microsoft confirmed Undead Labs and several other studios would leave the company amid wide restructuring that led to thousands of job cuts. Both Undead Labs and Ninja Theory found new owners, with their announced projects said to be moving forward. According to Game File, the exit deal reportedly removes any requirement for Undead Labs to release its next game through Microsoft’s subscription service. It’s unclear if the same terms apply to Ninja Theory’s Senua; Microsoft could still negotiate a separate agreement. Undead Labs was acquired by Microsoft in 2018 and, over the eight years before the sale, did not release a game under the publisher. State of Decay 3 was announced in 2020; the developer later said the reveal trailer existed mainly to confirm the game was coming because the project was then “a Word document.”