The developers behind the survival franchise have spent years working on the third installment amid reports of internal hurdles. However, last September, Xbox offered the studio the opportunity to operate independently using its own resources, which Undead Labs accepted.

Despite the split, State of Decay 3 remains active and on track for release, with a confirmed day-one launch on Xbox Game Pass and, recently, an executive explained the strategic decision behind maintaining this partnership.

State of Decay 3 Will Be Coming to XBOX Game Pass Despite Microsoft Split

When Undead Labs parted ways with Xbox Game Studios, fans feared for the future of State of Decay 3, the ambitious upcoming installment in the zombie survival franchise.

Despite the studio’s independence, its commitment to launching the game on Xbox Game Pass on day one remains unchanged.

In an interview with The Game Business, studio head Philip Holt explained why the game will debut on this subscription service.

“I don’t know that we’d be in the place we are today if not for the Game Pass audience. Even today, we have several thousand people coming through the door every day. The benefit of State of Decay is that it’s a very retentive game. Last time I looked, something like half of our monthly active users have been in the game for close to two years, and a quarter for more than five. A lot of players from Game Pass come in and they’re like ‘this isn’t for me’ and leave. There is a high churn rate. But of the players we capture, we capture for a long time. And then they become franchise fans and consume other titles, and they’re excited for State of Decay 3,” he said.

State of Decay 3

What to Expect from State of Decay 3

Despite development uncertainties and layoffs at Undead Labs following their split from Xbox, the game is still actively in development and targeting a 2027 release.

As part of Xbox’s broader multiplatform strategy, even amidst a recent return to exclusivity, State of Decay 3 will launch simultaneously on Xbox Series X|S, Xbox Game Pass, PlayStation 5, and PC.

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