State of Decay 3’s Development is “Coming On Really Well,” Says Xbox Game Studios Head

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During the recent Xbox Developer_Direct 2026 showcase, fans didn’t get a new look at State of Decay 3. However, Craig Duncan, head of Xbox Game Studios, told GamesRadar that we’ll see more of the game, which is still in development, later this year.

He mentioned he couldn’t discuss State of Decay 3 yet, but development is progressing smoothly. He’s had the opportunity to play early versions of the game several times.

He joked that his colleagues would be furious if he revealed the answer. Instead, he shared that he’s visited the game studio several times in the last six to eight months and has played the game with the development team. He said it’s progressing nicely and expressed excitement about the future of the game series.

I expect to be dealing with this a lot more in the next year… does that address what you were asking? [chuckles]

Undead Labs hasn’t shared much information about State of Decay 3 recently. The last update was a gameplay trailer shown in 2024. The studio has also faced issues, including reports in 2022 of a negative work environment with sexism and toxicity. This led to staff leaving, which slowed down the game’s development. Further setbacks came in July 2025 with studio layoffs.

Recent reports suggest that State of Decay 3 might also be released on PlayStation 5, like other games published by Xbox Game Studios. It’s unclear if the PS5 version will launch at the same time as the PC and Xbox Series X/S versions, or if it will come out later.

The State of Decay series began in 2013 as a game on Xbox Live Arcade. It takes place in a town overrun by zombies, and challenges players to unite the remaining survivors and rebuild a community. Gameplay focuses on both action-packed, third-person combat and realistic survival elements, requiring players to manage vital resources like food and water for their growing community.

The 2018 game State of Decay 2 built on the original by offering players a choice of several different, challenging small-town environments. It also expanded the open-world gameplay and added the ability for up to four players to play together online. Though the game received updates and a re-release called the Juggernaut Edition in 2020, Undead Labs announced in 2024 that they were ending further development on State of Decay 2 to concentrate on creating State of Decay 3.

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2026-01-26 14:11