State of Decay 3, Which Was at Xbox Games Showcase and Is Currently Running Playtests, Reportedly at Risk of Cancellation as Buyer Sought for Undead Labs

There is fresh concern for State of Decay 3 and its developer Undead Labs this morning, after reports overnight suggested both are under threat of closure as part of impending layoffs at Xbox. Gamesbeat reported on work being done behind the scenes to find a buyer for Undead Labs, which is based in Seattle, Washington — a report that was backed up by Windows Central. If a buyer can't be found, the reports indicate, Microsoft may cancel State of Decay 3. Undead Labs is one of a number of Microsoft-owned studios reportedly fighting to prevent a closure order. Psychonauts developer Double Fine, South of Midnight developer Compulsion, and Hellblade developer Ninja Theory are also said to be in talks with Microsoft over potentially buying themselves out. Hundreds of jobs are at risk either way, not just at these studios, but across Microsoft’s gaming business, which includes Bethesda and Activision Blizzard studios and publishing operations. State of Decay 3, like Ninja Theory’s Senua, was at Microsoft’s Xbox Games Showcase earlier this month. According to Game File, Microsoft allegedly planned to close or spin off Ninja Theory when it revealed Senua at the showcase event, and it did so