State of Decay 3 Studio Lays Off a 'Significant' Number of Developers, Says the Game Is Unaffected

Undead Labs, the studio behind State of Decay 3 , has announced layoffs affecting a 'significant' number of developers. The news, first reported by Kotaku, coincides with the studio regaining independence — a year after Microsoft shut it down as part of its own restructuring.

What we know for sure

• The cuts hit a 'significant' portion of the team — the exact number of developers is not disclosed.
• Studio management claims this will not affect the development of State of Decay 3 .
• At the same time, Undead Labs is returning to independent status.
• A year earlier, the studio was closed by Microsoft as part of gaming division optimization.

Fact or rumor?

The layoffs themselves and the return to independence come from Kotaku. The phrase 'significant number' is the source's wording, not official statistics. Neither the exact number of layoffs nor the specific roles affected have been made public. The promise that the game won't be impacted is a studio statement, not a confirmed fact — it can only be judged at release.

Why this matters for VirtCardPay readers

Gaming is one of the largest segments for subscriptions and digital purchases. When a studio loses its team and a release hangs in the balance, it directly affects anyone paying for gaming services: Game Pass , in-game purchases, season passes, regional pricing in stores. A studio moving to independent status may mean a change of publisher and, consequently, changes in pricing and availability across regions.

For those paying for foreign gaming services from countries with limited access to international payment systems, news like this is a signal to watch for changes in payment details and regional terms. Virtual cards remain a working tool here: they let you pay for subscriptions and purchases even when a publisher or platform changes its sales structure.

What's next

Undead Labs has not yet named a release date for State of Decay 3 or a new publisher. Two things are worth watching: official studio statements about the project's fate, and how the status change affects the game's availability and pricing across regions.