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Microsoft is reportedly restructuring its Xbox Game Studios division again, with reports indicating the company is looking for a buyer for Undead Labs. The studio is currently in development on State of Decay 3, raising questions about the game’s future under new ownership.
Undead Labs and State of Decay 3
According to recent reports, Microsoft is actively seeking a buyer for Undead Labs. This potential sale comes as the studio works on the next installment in its popular zombie survival franchise, State of Decay 3. If a sale occurs, it remains unclear whether the new owner will continue development or if Microsoft will retain publishing rights.
This move aligns with broader industry trends where major publishers are reassessing their studio portfolios. For fans expecting State of Decay 3, this uncertainty adds a layer of risk to the project’s timeline and final release status.
Arkane Lyon and Marvel’s Blade
In addition to Undead Labs, Microsoft is reportedly considering significant changes regarding Arkane Lyon. The studio is currently developing Marvel’s Blade, a high-profile title that has faced multiple delays. Reports suggest Microsoft may cancel the game entirely or shut down the studio.
A cancellation would represent a major shift for Microsoft’s first-party content strategy, particularly regarding its investment in superhero IPs. If Arkane Lyon is closed, it would mark another reduction in Microsoft’s internal development capacity following recent layoffs and restructuring efforts.
What this means for you
If you are a fan of State of Decay or have been waiting for Marvel’s Blade, these reports suggest increased uncertainty. While no official announcements have been made, the potential sale or closure of these studios could impact release dates and development continuity. Keep an eye on official statements from Xbox Game Studios for confirmation.
Source: Thurrott
Over to you: Do you think Microsoft should keep developing State of Decay 3 internally, or is selling the studio a smart business move?
