Xbox is considering canceling a game they’ve been working on for seven years


There was a rumor that the Xbox team Undead Labs is one of the studios that Microsoft wants to get rid of, and at the same time there is a possibility that they may cancel State of Decay 3.

In the coming days, Microsoft will implement another wave of layoffs in Xbox, possibly the biggest we’ve seen yet. Earlier it was mentioned that the studios Double Fine Productions, Ninja Theory and Compulsion Games were written off, and now there is a rumor that the team is also on that list. Undead Labs.

To remind ourselves, Undead Labs is the only Xbox team that has not completed or launched a single game since coming under the auspices of Microsoft in 2018. All this time they were preparing a game of survival State of Decay 3which is scheduled for release in 2027.

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However, there is a chance that the game will be canceled even though it is about half a year away from completion. According to the Gamesbeat portal, Microsoft is looking for interested parties to take over Undead Labs, and with them State of Decay 3. But if they don’t find a buyer, the game is said to be in bad shape.

State of Decay 3 Official Gameplay Reveal | XBOX Games Showcase 2026

All these are just rumors for now, but we will find out the truth of these claims very soon. Microsoft is preparing for a big reset of the Xbox, and as part of that, big changes are coming, which according to all the announcements, could be shocking for Xbox fans.

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