Recent reports indicate that State of Decay 3, one of the most anticipated titles on the platform, may not launch on Xbox Game Pass day-one. This potential shift follows news that developer Undead Labs is being sold as part of Microsoft’s broader restructuring efforts.
The sale changes the rules
According to reporting from Game File, the acquisition deal for Undead Labs reportedly includes specific terms regarding future releases. The report states that State of Decay 3 “will not obligate the game to any Xbox-controlling terms, such as having to be on Game Pass.”
This means that while the new owners are free to place the title on the subscription service if they choose, they are no longer contractually bound by Microsoft’s previous requirements. The decision now rests entirely with whoever acquires the studio.

A high-profile departure
Undead Labs has been a key developer for Xbox in recent years, best known for the State of Decay survival horror series. The upcoming third installment is currently one of the most wishlisted games on Steam, ranking within the top 30 titles on the platform.
The studio’s sale comes amidst wider layoffs and restructuring at Xbox Game Studios. Other affected studios include Compulsion Games, Double Fine Productions, and Ninja Theory. While Undead Labs will continue to operate under new ownership, its separation from Microsoft marks a significant change for fans expecting the game as part of their subscription.
What this means for you
If you were counting on State of Decay 3 being included in your Xbox Game Pass library upon release, that guarantee is no longer certain. The new owners may still opt to include the game on Day One, but there is no contractual requirement forcing them to do so.
For Windows PC gamers who rely on Game Pass for access to major releases, this creates uncertainty around one of the platform’s most popular upcoming titles. Whether you will need to purchase the game separately depends entirely on the business strategy of Undead Labs’ new parent company.
Source: Windows Central
Over to you: Would you still buy State of Decay 3 if it wasn’t included in your Xbox Game Pass subscription?
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