State of Decay 3 was marketed as a day-one Xbox Game Pass title, but the deal to sell developer Undead Labs removes any contractual obligation for it to appear on the service, so subscription access at launch is now genuinely uncertain.
- Microsoft will continue funding State of Decay 3 through its release, even after Undead Labs moves to a new, as-yet-unnamed owner.
- The Game Pass decision now sits entirely with Undead Labs and its new owner, per reporting from Game File’s Stephen Totilo, with clarity expected later in 2026.
- The game is still targeting 2027 and is planned for Xbox, PlayStation, and PC, so UAE players without an Xbox can still buy it outright either way.
- There is nothing to preorder and no regional pricing yet; this is a wait-and-see story, not a buying decision.
What the Undead Labs deal actually changes
According to Stephen Totilo’s reporting at Game File, the agreement for Undead Labs to leave Xbox ‘calls for continued funding and eventual release of State of Decay 3 but will not obligate the game to any Xbox-controlling terms’. That phrase covers Game Pass specifically. Microsoft keeps paying for development through launch, but the decision on whether the game appears in its subscription service now belongs to Undead Labs and whoever ends up owning the studio.
The divestment is part of a much larger restructuring in which Xbox confirmed 3,200 job cuts and five studio exits while insisting no games were being cancelled. Undead Labs, a 17-year veteran of the State of Decay franchise, is one of the studios heading out the door. PCMag Middle East has more on the wider split if you want the full corporate picture.
The promise versus the paperwork
This matters because Game Pass was central to how State of Decay 3 was sold to players. When the game got its first gameplay reveal at the Xbox Games Showcase, it was listed as coming in 2027 to Xbox Series X|S and PC, with Game Pass day one. That marketing was written when Undead Labs was an Xbox studio. It no longer is, and no one has committed to honouring the old pitch.
To be clear, nothing has been ruled out either. There is no announcement that the game is skipping Game Pass, only the removal of the requirement that it must be there. Reporting suggests a decision will land later in 2026, once the studio’s new ownership is public and the dust settles. Until then, UAE Game Pass subscribers should treat day-one access as uncertain rather than dead.
Where the game itself stands
Encouragingly, the corporate drama has not derailed development. State of Decay 3 is still targeting a 2027 window, is planned for Xbox, PlayStation, and PC, and has moved into alpha playtests with public signups, featuring four-player co-op, new base-building and resource systems, and a sharpened combat focus. That is a healthier position than it seemed a while back, when the studio admitted the original 2020 trailer was purely a concept.
Earlier reports raised the spectre of cancellation if no buyer emerged, but with funding secured through release and a sale agreed, that risk looks considerably lower. The practical upshot for UAE players: the game is coming, PS5 and PC owners are covered regardless, and the only open question is whether your Game Pass subscription gets you in on day one or whether this becomes a full-price purchase. Expect an answer once the new owner steps out of the shadows.
FAQ
Will State of Decay 3 launch on Xbox Game Pass?
It is undecided. The deal to sell Undead Labs removes any obligation for the game to launch on Game Pass, and the decision now rests with the studio and its new owner. A confirmation either way is expected later in 2026.
Is State of Decay 3 still in development after the Undead Labs sale?
Yes. Microsoft has agreed to keep funding the game through its release, and it has entered alpha playtests with public signups, featuring four-player co-op and new base-building systems.
Which platforms will State of Decay 3 release on?
The game is planned for Xbox Series X|S, PlayStation, and PC, with a 2027 release window. It is no longer an Xbox-exclusive title.
Who owns Undead Labs now?
The new owner has not been revealed. Xbox has confirmed the studio is being divested as part of a wider restructuring, with details expected once the sale process settles.
