Undead Labs, the studio behind the State of Decay franchise, is reportedly facing closure despite having a new game scheduled for release in 2027.
The upcoming title was announced several years ago, positioning the studio for a major launch later this decade.
Rumors of the shutdown surfaced amid a broader restructuring effort within the studio’s parent organization, which has been consolidating its game development assets.
Internal sources indicate that employees are confronting uncertainty about their positions, with potential layoffs looming.
Analysts warn that terminating a studio with a long‑term project in development could delay the release schedule and impact the franchise’s fan community.
The development community views the situation as a reflection of the challenges publishers face when balancing ambitious project timelines with shifting corporate priorities.
