Image credit: Undead Labs

State of Decay 3, the once first-party Xbox game, may not launch into Game Pass after all. The game's developer, Undead Labs, is among the studios Microsoft is parting with following its decision to lay off 3200 workers from across the Xbox division.

Microsoft revealed that it found a buyer for Undead Labs, and will continue to fund the game until it's released. However, one detail that was not mentioned in the initial announcement is that the agreement frees the game from its obligation to "any Xbox-controlling terms," according to a report by Game File.

This means State of Decay 3 may no longer be released on Game Pass. That announcement, of course, would have to be made by the studio's new owner. Speaking of which, the same report says the identity of Undead Labs' new owner will be revealed later this summer.

Like all first-party Xbox games, State of Decay 3's trailers and news updates have always come with the assurance that the game would launch on Game Pass on day one. This includes June's gameplay reveal, which was part of Xbox's Game Showcase. This doesn't necessarily preclude the game from launching into Game Pass, but that would require Xbox to make a separate deal with Undead Labs' new owner.

State of Decay 3 has had a long development cycle. It was initially announced in 2020, but development work didn't begin in earnest until much later. The game is set for release in 2027 on PC, PS5, and Xbox Series X/S.

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