State of Decay 3 may no longer launch into Game Pass, now that Microsoft is letting developer Undead Labs go

State of Decay 3 may not launch on Game Pass after all, as Microsoft is parting ways with its developer, Undead Labs. Microsoft found a buyer for Undead Labs and will continue to fund the game until its release, but the agreement reportedly frees the game from any obligation to Xbox-controlling terms. This means the decision on whether to release the game on Game Pass will be up to the studio's new owner, whose identity will be revealed later this summer. While the game's trailers have always promised a day-one Game Pass launch, this would now require a separate deal between Xbox and Undead Labs' new owner. State of Decay 3 was initially announced in 2020 and is set for release in 2027 on PC, PS5, and Xbox Series X/S.