GAMES

Microsoft reportedly considering closure of State of Decay studio Undead Labs amid Xbox restructuring

Rock Paper Shotgun reports that Microsoft may shut down Undead Labs, the developer behind State of Decay, as part of broader layoffs affecting Xbox, Bethesda, and Blizzard. The closure would be part of Xbox's strategy to reduce projects and headcount, despite Microsoft's substantial financial resources. Workers at affected studios have criticized the cuts, particularly given the company's significant AI investments.

First seen Jun 30 ago2 sources covering

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What we know

  • State of Decay developer Undead Labs faces potential closure as Microsoft restructures Xbox operations
  • The layoffs extend across multiple Microsoft-owned studios including Bethesda and Blizzard
  • Workers have spoken out against the cuts, questioning the financial rationale given Microsoft's investment capacity
  • Microsoft is reportedly scaling back Xbox projects and reducing its workforce

Referenced titles

TRIGGERState of Decay 3