State of Decay 3 Becomes Focus for Undead Labs as It Moves on From State of Decay 2

State of Decay developer Undead Labs has signaled the end of content updates for State of Decay 2 as it moves to focus on the upcoming State of Decay 3.

Undead Labs has released nearly 40 content updates for State of Decay 2 in the six years since its 2018 launch on PC and Xbox One. In a blog post, Undead Labs said State of Decay 2’s final update, Update 38, is due out later this year. It aims to fix some long-standing issues, implement additional quality-of-life improvements, and permanently unlock seasonal or otherwise previously-gated content, such as Winter outfits and the Wizard Van.

Of course, State of Decay 2 will remain playable, and as a Xbox Game Studios title it will remain part of the Xbox Game Pass library.

“We know you love this world we’ve created and the amazing community you’ve helped build,” Undead Labs said. “While you’ve enjoyed State of Decay 2 for many years, you may have heard that we are also hard at work on the next evolution of the franchise!

“Our ambition is to make the greatest zombie survival sim in the franchise, and to do so, we’ll be shifting our focus and resources to making the upcoming third installment, State of Decay 3.”

Microsoft announced State of Decay 3 four years ago, during its 2020 Xbox Games Showcase. After a lengthy radio silence, State of Decay 3 resurfaced in the summer with a new trailer, below, although it still lacks a release date.

We also learned that Undead Labs has teamed up with Fallout: New Vegas, Grounded, and Avowed developer Obsidian on a "shared world feature" that aims to provide a more flexible online co-op experience for State of Decay 3 players.

“The acclaimed Grounded released with Undead Labs’ shared save technology and State of Decay 3 will build on that to deliver a truly open co-op world owned by multiple players,” Microsoft teased.

In 2022, Xbox Game Studios boss Matt Booty said State of Decay 3 is built with Unreal Engine 5 and that Gears of War developer The Coalition is assisting development.

Undead Labs itself has faced allegations of fostering toxic workplace conditions and a lack of direction.

Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.