State of Decay 3 Might Not Be on GamePass, and XBOX is Fine With It

Microsoft just announced the most significant restructuring in XBOX history, with over 3,200 employees set to be laid off throughout 2027, and four of the company's gaming studios being handed over to new management.

XBOX CEO Asha Sharma announced the layoffs earlier today, revealing that XBOX is currently operating at margins that are 3-10x lower than its competitors', as the company's all-in bet on Game Pass didn't pay out quite how they expected. 1600 employees were laid off today, with the rest of the role eliminations set to take place throughout F2027.

Senua and State of Decay 3 Survive XBOX Restructuring

The four studios leaving XBOX are: Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs. Compulsion Games and Double Fine will revert to private ownership and transition to independent studios for their next games, while Undead Labs and Ninja Theory now have new owners.

XBOX is also making sweeping reductions across many of their other studios and will be focusing on developing higher priority projects. These reductions will affect Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and XBOX Game Studios, but Sharma has stated none of XBOX's first-party publicly announced games will be canceled as a result of the restructuring.

As employees and studios leave the XBOX family, gamers are left to wonder what will become of the company's upcoming games. Luckily, Ninja Theory's upcoming action-adventure game, Senua, and Undead Labs' zombie survival, State of Decay 3, have both made the cut and will continue being developed under their new ownership. Per Asha, "Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3. In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options."

According to a report from GameFile, an unnamed source claims State of Decay 3 may not be released on Game Pass: "The deal calls for continued funding and eventual release of State of Decay 3 but will not obligate the game to any Xbox-controlling terms, such as having to be on Game Pass."

State of Decay has solidified a die-hard fanbase of zombie survivalists, and the third installment of the series is slated to arrive in 2027 and will feature shared-world multiplayer—a feature that has been highly requested for quite some time.

SoD3 players will be able to enjoy four-player co-op, shared progress, and the ability to start multiple settlements and create a community network, so it's safe to say this fanbase is breathing a sigh of relief.

Major Management Changes

Sharma's announcement reveals a big part of the company's problem comes from an excessive number of management layers, which will soon be drastically reduced. Sharma revealed some parts of the company have as many as 14 layers of management, which has resulted in blurred accountability and slower decisions, but these layoffs will simplify their process in a major way.

Sharma states, "We will reduce management layers to no more than 5, and where possible, 3. We will deliver success through a flatter organization that is built around makers (individual contributors focused on building), player-coaches (leaders who remain deeply involved in the work while developing their teams), and directly responsible individuals (DRIs) who own key decisions and outcomes. And we will streamline how we work across our tools, with a cleaner code base, shared services, and 50% reduced vendor spend."

XBOX is also adding a Chief Operating Officer for the first time, with XBOX veteran Helen Chiang taking on the role. Chiang has been with XBOX for almost two decades and will be focused on overseeing investment decisions and bringing the company under one operating model.