Undead Labs goes independent and employee-owned after Xbox divestiture

Undead Labs, maker of State of Decay, has left Xbox to become an independent, employee-owned company. CEO Philip Holt described a "harrowing three months", September layoffs and a publishing deal with an unnamed partner that will let the studio finish State of Decay 3 for a 2027 release without outside investors.

• Undead Labs registered a new Delaware C corporation and is issuing equity to all employees
• Holt holds a minority stake but keeps voting control via super-voting share classes
• State of Decay 3 has a 2027 release window and is funded by a publishing partner
• The studio carried out significant layoffs in September; the exact number is undisclosed