State of Decay 3 may no longer launch on Xbox Game Pass following Undead Labs split

Published: 16:14, 06 July 2026
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State of Decay 3 may no longer launch on Xbox Game Pass following Undead Labs split
Microsoft removed Undead Labs from its first-party studio lineup, putting State of Decay 3's Xbox Game Pass day-one release in jeopardy

Key Points from the Article

  • State of Decay 3 was previously confirmed as an Xbox Game Pass Ultimate and PC Game Pass day-one title when it was an Xbox-exclusive first-party game
  • A new publisher is unlikely to follow Microsoft's day-one Game Pass strategy, though a separate deal remains possible
  • Previous announcements about State of Decay 3's Game Pass availability should be considered outdated until official confirmation
Microsoft removed Undead Labs from its first-party studio lineup, putting State of Decay 3's Xbox Game Pass day-one release in jeopardy

State of Decay 3 was originally confirmed as a day-one Xbox Game Pass release, but Microsoft's split with Undead Labs has put its launch plans into question.

State of Decay 3’s Xbox Game Pass future is now in jeopardy after Microsoft completely overhauled Xbox’s studio strategy, removing Undead Labs from its first-party lineup. 

State of Decay 3 was previously announced as an Xbox Game Pass day-one title, but Xbox’s recent layoffs and studio changes have left the game’s plans up in the air. State of Decay 3 was announced as an Xbox-exclusive title, signaling that it would release as a first-party Xbox game. 

As such, it was confirmed to be a day-one release for Xbox Game Pass Ultimate, as well as PC Game Pass, so subscribers can download and play it on release day without needing to buy it separately.This news made sense at the time, as Microsoft has historically launched all of its first-party titles on Game Pass day one. 

Xbox Game Pass is one of Xbox’s main selling points, so releasing its first-party games on the service is a strategy Microsoft has never deviated from before now.But times have changed. Following Microsoft’s sudden separation from Undead Labs, the studio is currently in search of a new publisher. 

While this new partnership has yet to be announced, it’s unlikely that whoever ends up publishing State of Decay 3 will adhere to Microsoft’s day-one Game Pass strategy. State of Decay 3 has not been confirmed for Xbox Game Pass since Microsoft removed Undead Labs from its first-party studios. 

Undead Labs is now seeking a new publisher following separation from Microsoft, making previous Game Pass commitments uncertain
Undead Labs is now seeking a new publisher following separation from Microsoft, making previous Game Pass commitments uncertain

There’s a chance the game will still launch on Game Pass on day one, but contractual obligations under Microsoft’s ownership likely do not apply to Undead Labs anymore.That being said, it’s certainly possible State of Decay 3 comes to Game Pass under a separate deal with its new publisher. 

Microsoft has been marketing State of Decay 3 as a Game Pass title for years now, and releasing it on Game Pass would prevent players from wondering where their promised game is.

We will have to wait until Microsoft or Undead Labs share an official announcement about State of Decay 3. For now, consider previous announcements about State of Decay 3 being on Xbox Game Pass day-one outdated.


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