Undead Labs Details State of Decay 3 Changes
Studio head Philip Holt outlines combat rebuilds, larger settlements, and a new publisher to be announced soon.
Updated on Nov. 6, 2026 in Job Search
Undead Labs studio head Philip Holt revealed new details about State of Decay 3 in an interview. The studio went independent from Xbox in September 2026 following Xbox layoffs.
Why it matters
The independence of Undead Labs, which owns the State of Decay intellectual property, shapes how the next installment in the series will be published and funded. The announced changes to combat, settlements, and survivor systems signal a broader rebuild of the series rather than an incremental update.
Philip Holt has served as Undead Labs studio head for nearly seven years, and State of Decay 3 is planned to support 12+ survivors across multiple bases. The new publisher and release timing remain unannounced.
The players
Undead Labs
Undead Labs is the developer studio behind the State of Decay series, which it now operates as an independent company after splitting from Xbox.
Philip Holt
Philip Holt is the studio head of Undead Labs, having led the developer for nearly seven years through its development of the State of Decay franchise.
The details
Combat in State of Decay 3 has been rebuilt from scratch with more tactical fights, and settlements are larger. The game has no face or body editor, while existing Freaks are receiving major redesigns, and weather affects driving, zombie perception, crops, and water supplies.
Timeline
September 2026: Undead Labs officially went independent from Xbox.
November 6, 2026: Interview revealing new State of Decay 3 details was published.
Market Landscape
Undead Labs' departure from Xbox amid the platform's 2026 layoffs reflects a broader pattern of first-party studios becoming independent as console publishers consolidate. The State of Decay 3 announcement positions the developer to compete as a standalone publisher-independent studio in the survival-action genre.
Players of the State of Decay series can expect a rebuilt combat system and larger settlements in State of Decay 3, though the game will not include a face or body editor. Existing Freak types are being redesigned, and a console beta with crossplay is planned before launch.
The takeaway
The State of Decay 3 update shows an independent developer rebuilding core systems from scratch, with weather, human enclave relationships, and tactical combat all changing based on player actions.
What happens next
A new publisher for State of Decay 3 is to be announced soon, and a console beta with crossplay is planned.
Further reading
Explore more job search coverage to see how studio restructurings like this one affect the games industry workforce.
Source note: This article includes information reported by Insider Gaming.
