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State of Decay 3 is still planned to launch day one on Xbox Game Pass, according to Undead Labs studio head Philip Holt. In an interview published October 6, 2026, Holt said the service helped the franchise reach a large audience, while the game’s planned four-player shared-world co-op gives players a reason to bring friends along. That is Holt’s explanation of the plan—not a disclosed publishing contract or a guarantee.
Why Game Pass remains in the plan
Holt said Game Pass helped the State of Decay franchise reach 25 million players. That figure is his interview statement; the interview does not identify an independent measurement or audit. He described the audience as a mix: some subscribers try a game and move on, while others stay with the series for years and become fans who are interested in the next installment. “I don’t know that we’d be in the place we are today if not for the Game Pass audience,” he said.
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
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State of Decay 2 - Ultimate Edition - Xbox One | $100.16 | Buy on Amazon |
| 2 |
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State of Decay- Year-One Survival Edition | $35.99 | Buy on Amazon |
| 3 |
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Desperados 3 - Xbox One | $15.00 | Buy on Amazon |
| 4 |
|
No More Heroes 3 – Day 1 Edition - Xbox Series X | $21.79 | Buy on Amazon |
Co-op gives the service strategic value
Holt called State of Decay 3’s planned four-player shared world the game’s biggest investment. His argument is that a broad Game Pass audience can help players find the game, play with friends, and invite others to join. “Our biggest investment by far is the four-player co-op shared world, so a large audience that comes through Game Pass becomes a huge benefit.” This is the studio head’s strategic rationale, not independently demonstrated evidence of future sales or player growth.
What Undead Labs leaving Xbox means
The Game Business reported that Microsoft accepted a management-led acquisition offer. Holt formed Full Measure as the acquisition vehicle, and employees hold shares in it; the interview describes Undead Labs as employee-owned after the transition. The studio also has a new publisher for State of Decay 3, but the article did not identify that publisher.
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- State of Decay 2 Ultimate Edition includes early access to the full game, a code for the original State of Decay: Year One Survival Edition on console, and a code for two add-on content packs: Independence Pack and Daybreak Pack
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Holt described the buyout as a way to secure the remaining capital needed to finish the game while continuing independently. “As an independent, we really get to serve an audience,” he said. In other words, the change in studio ownership did not, according to Holt, remove the planned Game Pass launch. The interview does not explain the contractual or commercial terms behind that plan.
What is known about development and timing
At the time of the October 6, 2026 interview, Holt said the game was in alpha and scheduled for release the following year, 2027. No exact date was given, so 2027 is a reported target, not a guaranteed launch date.
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Holt said staffing was reduced after the transition and development required changes, but not a radical rescope. The interview names Virtuos, Wushu, and Blind Squirrel as co-development teams. Holt said the studio had the runway it needed to bring the game to market, but declined to give a number for the staff reductions.
What the interview says about State of Decay 2
Holt said Undead Labs had released 38 updates for State of Decay 2, with the most recent arriving in November 2024. The figure and timing are his statements in the 2026 interview, rather than figures attributed there to an independent study.
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Source
Christopher Dring, “How Undead Labs saved itself and State of Decay from oblivion,” The Game Business, October 6, 2026. Read the interview.
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