Undead Labs
CompanyUnited States
26 documents in the library are about Undead Labs, from writers such as The Game Business, Game File and Hit Points. Each has a summary and key insights with the page they come from.
- Articles
- 15
Connections
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On Steam
Steam estimates as of 9 Oct 2026. Revenue is premium revenue on Steam only: game sales, without DLC.
- Revenue as developer
- $72.1M
- 3 games
- Units sold
- 4.2M
- as publisher or developer
- Headquarters
- United States
Undead Labs’s best-selling games on Steam
| Game | Released | Share of the best seller | Revenue | Units |
|---|---|---|---|---|
| State of Decay 2Developer | 2020 | $41.0M | 2.1M | |
| State of Decay: Year-OneDeveloper | 2015 | $16.6M | 986K | |
| State of DecayDeveloper | 2013 | $14.4M | 1.1M | |
| State of Decay 3Developer | — | — | — |
Documents about Undead Labs
How Undead Labs Saved Itself and State of Decay from Oblivion
Undead Labs, the developer behind the State of Decay franchise, recently transitioned from an Xbox-owned studio to an independent entity following a management-led buyout.
- Undead Labs transitioned to an independent studio through a management-led buyout from Microsoft, facilitated by the creation of an acquisition vehicle called Full Measure.
- Following the acquisition, the studio implemented significant staff layoffs to establish a durable cost structure necessary for independent operations.
- State of Decay 3 remains in development and is scheduled for release in 2027, with the studio maintaining its commitment to launch the title day-one on Xbox Game Pass.
How Undead Labs saved itself and State of Decay from oblivion
Undead Labs has successfully navigated a complex transition from a Microsoft-owned entity to an independent, employee-owned studio.
- Undead Labs transitioned from a Microsoft-owned entity to an independent, employee-owned studio to ensure the long-term viability of the State of Decay franchise.
- The studio implemented a workforce reduction to align operational costs with its new independent model while issuing stock options to remaining staff to foster shared ownership.
- The State of Decay franchise has reached a milestone of 25 million players, with significant growth driven by the discoverability and scale of Xbox Game Pass.
Here’s The Dring: Nintendo’s Kyoto Museum
The Nintendo Museum in Kyoto serves as a strategic focal point for understanding the company’s broader initiative to leverage physical experiences as a core component of its business model.
- Nintendo is leveraging physical experiences, such as its Kyoto Museum, to bridge its historical legacy with its future business strategy.
- The Game Business platform has reached a milestone of over 30,000 subscribers as of September 2026.
- Industry analysis for the final quarter of 2026 is heavily focused on the anticipated market impact of the release of GTA 6.
Circle Games' $25M Round and Kingnet's $298M Wemade Stake Lead the Week
The gaming industry experienced a week of significant financial activity, with 11 tracked deals totaling $248.5 million.
- Kingnet Network is acquiring a 49% stake in Neosphere for $298 million, granting it an indirect 19.7% interest in South Korean developer Wemade.
- Digital Hearts Holdings successfully completed a management buyout led by founder Eiichi Miyazawa at JPY 1,060 per share, valuing the transaction at approximately $75.4 million.
- Circle Games raised $25 million in a Series A round led by Tencent to scale its mobile title Jelly Escape and double its headcount.
Xbox Layoffs, Halo To Activision, Destiny's Back (And More)
The gaming industry is currently navigating a period of significant structural shifts, characterized by ongoing corporate restructuring, long-term project planning, and strategic pivots for major franchises.
- Microsoft is laying off approximately 300 additional employees as part of an ongoing restructuring, with the company reporting it is now 75% through its planned reset.
- Halo development is being moved to Activision, with a small team remaining at Halo Studios to support existing games and the community, while Playground Games and Turn 10 are merging.
- Bungie has reversed its stance on the future of the Destiny franchise, announcing that Destiny 2 will unvault previous campaigns, destinations, and raids to remain a foundational part of the studio's future.
Is Xbox making the right decisions? Plus, how AI is (and isn’t) transforming game localization
Xbox is currently executing a major organizational reset aimed at improving profit margins and stabilizing its portfolio.
- Xbox is undergoing a major organizational reset, cutting 206 positions and consolidating development efforts under the Activision and Bethesda umbrellas.
- The company is shifting its strategic focus to core franchises, including the transfer of the Halo intellectual property to Activision.
- As part of its restructuring to improve profit margins, Xbox is divesting studios such as Ninja Theory and Undead Labs.
Is Xbox Making the Right Decisions? Plus, How AI Is Transforming Game Localization
The gaming industry is currently undergoing significant structural shifts, characterized by aggressive corporate restructuring at Xbox and the evolving integration of artificial intelligence in localization services.
- Xbox is undergoing a major structural reset, including 268 job cuts and the consolidation of studios like Rare, World’s Edge, and the Halo IP under Activision, while Obsidian moves to Bethesda.
- The Halo franchise is being transferred to Activision to revitalize the series, as previous efforts under 343 Industries (Halo Studios) failed to meet performance expectations.
- Xbox’s strategic shift follows poor financial performance, where aggressive studio acquisitions failed to drive expected growth in Game Pass subscriptions or console market share.
Deckchairs on the Titanic
The September 2026 analysis examines the latest organizational restructuring within Microsoft’s Xbox division, characterizing the move as a futile attempt to address systemic failures through administrative consolidation.
- Microsoft has initiated a major restructuring of its Xbox division, resulting in 268 additional layoffs and the consolidation of several business units under Activision.
- The company aims to reach a total of 3,200 layoffs for the current fiscal year, with approximately 800 more job cuts expected to follow the 1,600 positions eliminated in July.
- Key organizational changes include folding Halo Studios, Rare, and World’s Edge into Activision, merging Turn10 with Playground Games, and placing Obsidian under Bethesda’s management.
Microsoft Makes Big Cuts at Halo Studios, Shifts Franchise to Activision
Microsoft is undergoing a significant restructuring of its gaming division as of September 2026, characterized by workforce reductions, studio reassignments, and a fundamental shift in the management of its flagship intellectual property.
- Microsoft is laying off 268 employees, primarily from Halo Studios (formerly 343 Industries) and Xbox Games Studio management, as part of a broader 3,200-person workforce reduction announced in July.
- Development of the next Halo game is moving to Activision, where a newly assembled team will lead production and publishing, while Halo Studios shifts to a caretaker and support role.
- The potential sale of Ninja Theory has fallen through, leaving the studio at risk of closure and subject to a formal consultation process.
Halo to Activision: Xbox Merges Studios and Cuts 268 Jobs
Xbox has initiated a significant organizational restructuring, resulting in 268 job cuts across its internal studios and central operations.
- Xbox is cutting 268 jobs across Halo Studios, the Xbox Game Studios central organization, and other first-party teams as part of an ongoing restructuring process.
- Halo development is being transferred to Activision, which will lead both existing projects and the creation of a new, purpose-built team for the next title in the franchise.
- Rare and World’s Edge have been moved to report under Activision, while Obsidian will now report directly to Bethesda.
Xbox's big reset | Week in Mobile Games podcast
Xbox is currently executing a fundamental strategic pivot, moving away from an aggressive focus on scaling the Game Pass subscription service toward a broader objective of engaging one billion players.
- Microsoft is undergoing a major restructuring involving 3,200 staff layoffs and the divestment of five studios, including management buyouts for Compulsion Games and Double Fine and the sale of Ninja Theory and Undead Labs.
- Microsoft has set an ambitious goal to engage one billion daily active users, a target that industry analysts view as highly challenging given that current console markets are largely flat and the company's total monthly active user base across its gaming division was reported at 500 million in 2024.
- Pokémon Go has generated over $9 billion in lifetime revenue across the Google Play Store and Apple App Store during its 10-year history, with player spending peaking during the pandemic.
Hit Points #385: Fallout
The July 2026 analysis of Microsoft’s Xbox division highlights a period of significant organizational restructuring characterized by mass layoffs and the divestment of internal studios.
- Microsoft's Xbox division is undergoing significant restructuring, including 3,200 job cuts (20% of its headcount), with half already implemented and the remainder to follow over the next 12 months.
- Several studios are being divested: Double Fine and Compulsion are returning to independence with their IP, while Ninja Theory and Undead Labs have been sold off. Arkane Lyon is in consultation for potential independence or sale.
- The layoffs extend across various studios and departments: Obsidian lost a quarter of its staff, had projects like an 'Avowed' sequel canceled, and is now working on a new 'Fallout' game. Id Software's tech team has been dismantled, and ZeniMax Online (maker of 'The Elder Scrolls Online') eliminated over 200 roles.