Gaming News
Undead Labs Rewrote State of Decay 3 After Abandoning MMO Vision
Developing
Photo: rockpapershotgun.com (from the cited article) All clips and posts below are embedded from their original sources.
“So I would say the game that's present today has really been built probably since '23, maybe late '22.”
via rockpapershotgun.com
Our take
The admission that Undead Labs 'basically rewrote the entire State of Decay game' highlights the high risk of pivoting from an MMO to a traditional survival title. This technical debt and creative reset explain why the studio was in a position to find a new publisher quickly after Xbox cut ties, despite the need to lay off a significant number of staff.
Background
State of Decay 3 was announced in 2020 with a cinematic trailer depicting a cold-climate zombie apocalypse, though Undead Labs later confirmed the teaser bore little resemblance to the actual project. The game was originally intended to expand the series' co-op roots into a full MMO capturing the scale of a global zombie apocalypse, a vision championed by founder Jeff Strain before he left the studio in 2019.
Following the 2020 announcement, a small team worked on MMO technology while the rest of the studio supported State of Decay 2. In late 2022, CEO Philip Holt and the team decided to pivot back to a scale resembling the first two games, which required throwing out much of the existing work.
This development history occurred while the studio was under Xbox, which later cut ties with Undead Labs, leading to the studio's move to independence.
The timeline
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Rock Paper Shotgun reported on the State of Decay 3 rewrite
Rock Paper Shotgun reportedly published an article detailing Undead Labs' decision to abandon the MMO vision for State of Decay 3. According to the report, an interview with CEO Philip Holt explained that the team 'basically rewrote the entire State of Decay game' after a significant creative pivot in late 2022. Holt reportedly noted that the current version of the game has been built since late 2022 or 2023, and that the studio has since reportedly found a publisher to fund its final months of [1]
Our read of the evidence
Mostly unverified. The story rests on a single report from Rock Paper Shotgun with no primary source confirmation or on-record statements from the parties involved. No other outlets have independently reported the details, and the studio and publisher have not publicly addressed the claims. The timeline and key assertions remain unverified pending further corroboration.
Our rating counts evidence, not opinions about anyone: events confirmed by a primary source (the person's own post, their official site, a court or government record) weigh most, then how many independent outlets report the story.
Frequently asked
Is State of Decay 3 an MMO?
No, State of Decay 3 is not currently an MMO. According to rockpapershotgun.com, Undead Labs spent years trying to make it an MMO but decided to pivot back to a game resembling the scale of the first two titles in late 2022.
Why did Undead Labs rewrite State of Decay 3?
The studio rewrote the game because they abandoned their initial plan to make it a full-scale MMO. According to rockpapershotgun.com, CEO Philip Holt stated that the creative pivot meant throwing out much of what had already been made.
Who is the CEO of Undead Labs?
Philip Holt is the CEO of Undead Labs. According to rockpapershotgun.com, he explained the studio's development history and the decision to pivot away from the MMO concept in an interview with GamesIndustry.biz.
Did Xbox cut ties with Undead Labs?
Yes, Xbox cut ties with Undead Labs. According to rockpapershotgun.com, the studio has moved to independence, and despite this, they found a publisher willing to fund the final months of State of Decay 3's development.
When was State of Decay 3 announced?
State of Decay 3 was announced in 2020. According to rockpapershotgun.com, the game was revealed with a cinematic trailer, though the teaser did not reflect the MMO ambitions the team was actually pursuing at the time.
More related drama (4)
Sources (2)
Cite this timeline
This timeline compiles 1 dated events from 2 sources. If it helped your reporting, cite it:
GenZHype. “Undead Labs Rewrote State of Decay 3 After Abandoning MMO Vision.”
GenZHype, 30 October 2026,
https://genzhype.com/gaming/undead-labs-rewrote-state-of-decay-3-after-abandoning-mmo-vision/.