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Wednesday, 7 October 2026
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Undead Labs head reflects on transparency during independent studio transition layoffs

Undead Labs studio head Philip Holt revealed he was candid with employees as the State of Decay developer faced layoffs while transitioning to an independent studio.

FTMQ Gaming, written by our newsroom0 views

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Picture: Game Developer

Undead Labs studio head Philip Holt stated that he was open with employees as layoffs approached during the studio's separation from Microsoft's Xbox Game Studios, Game Developer reported. Undead Labs is the developer responsible for the State of Decay series, including the upcoming title State of Decay 3. [1]

The developer experienced months of uncertainty after Xbox announced plans in July to divest the studio. In an interview with The Game Business cited by Game Developer, Holt explained that studio leadership attempted to navigate the transition by remaining candid with staff about the likelihood of job cuts. [1]

The restructuring follows broader changes across Microsoft's gaming division. As FTMQ Gaming reported earlier, Xbox planned 3,200 job cuts across its organization, which also affected studios such as Ninja Theory after proposed sales fell through. [2]

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In short

  • Undead Labs is transitioning from Xbox Game Studios to become an independent developer.
  • Studio head Philip Holt addressed forthcoming layoffs in an interview with The Game Business.
  • Undead Labs is currently developing State of Decay 3.

Sources

Every paragraph above points to the numbered items it rests on. Read the originals here.

  1. [1]Unlead Labs studio head says they were 'irresponsibly transparent' in preparing staff for layoffsGame Developer, 9h ago (the report this story comes from)

Background

  1. [2]Ninja Theory begins staff layoffs following proposed closure by Xbox FTMQ Gaming, 1d ago

Our newsroom writes these reports with the help of software, from the 2 sources listed and nothing else, and checks them against those sources. Facts can still be wrong or move on; the originals are the record. Spotted a mistake? Write to daniel@monsterkong.com.

Earlier reports of ours on the same people and subjects.

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