Gamesbeat is reporting that Undead Labs, the developer behind State of Decay 3, could end up shutting its doors if Microsoft is unable to find a buyer for the company, resulting in 110 job losses.
Undead Labs is listed among a number of major Xbox studios that are at risk of being closed down, including Double Fine Productions, Compulsion Games, and Ninja Theory. In total, there are some 435 jobs that could be lost as a result of the studios shuttering. Elsewhere, it’s stated that Blizzard and Bethesda could suffer ‘percentage layoffs,’ which is described by one source as likely being “the biggest single cut series for Xbox.”
Undead Labs has only just announced that State of Decay 3 is coming to the PS5 alongside the PC and Xbox Series X/S versions in 2027.
Microsoft issued its own statement, commenting:
We respect the right of our team members to make their voices heard. We have a long track record of good faith partnership with labor organizations, as demonstrated by the several finalized bargaining agreements our teams have reached with the CWA and our labor principles. We are continuing to negotiate in good faith with the CWA to reach agreements across Xbox.
The news comes following Xbox CEO Asha Sharma commenting that the console manufacturer needs to “reset” its business amidst plummeting revenue. One of the major changes that Sharma has introduced is the return to Xbox console exclusives, with Clockwork Revolution and Gears of War: E-Day among the upcoming titles that will not be coming to PS5.
[Source – GamesBeat]