TL;DR
Undead Labs has announced a new game project after recent restructuring. The development highlights ongoing changes at the studio, with details still emerging. This impacts fans and industry watchers tracking Xbox’s game development strategy.
Undead Labs has announced a new game project following recent restructuring within the studio. The announcement was made on March 2024, amid ongoing changes at the company, which is owned by Microsoft. This development is significant for fans, industry analysts, and Microsoft’s gaming strategy, as it signals a new phase for the studio after a period of organizational shifts.
According to a statement from Undead Labs, the studio is working on an unannounced project that aims to expand its portfolio beyond its well-known zombie survival titles. The studio confirmed that this project is in early development, with no specific release window provided. The announcement comes shortly after reports of internal restructuring at the studio, which included layoffs and leadership changes, as first reported by industry sources.
Microsoft, which acquired Undead Labs in 2019, has not officially commented on the restructuring or the new project. However, sources close to the company indicate that the move aligns with Microsoft’s broader strategy to diversify its gaming portfolio and bolster its Xbox Game Studios lineup. The new project is believed to be a departure from the studio’s previous focus on open-world zombie games, though details remain undisclosed.
Implications for Xbox’s Game Development Strategy
This announcement underscores Microsoft’s ongoing efforts to revitalize and diversify its gaming portfolio through its Xbox Game Studios. The new project signals a potential shift in Undead Labs’ creative direction and indicates that Microsoft is investing in expanding its roster of exclusive titles. The restructuring and new project may also reflect broader industry trends toward innovation and risk-taking in game development, especially as the company seeks to compete with other major players.
For fans, this could mean a broader range of game genres and experiences from Undead Labs in the future. For industry analysts, it highlights how large corporations like Microsoft are managing their studios amid market pressures and internal changes, with some uncertainty about the timeline and scope of the new game.

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Recent Changes and Past Developments at Undead Labs
Undead Labs, best known for its State of Decay series, was acquired by Microsoft in 2019 as part of its strategy to bolster exclusive titles for Xbox. Since then, the studio has been working on its next major project, but details have remained largely under wraps. In late 2023, reports emerged of internal restructuring, including layoffs and leadership shifts, which raised questions about the studio’s future direction.
Despite these challenges, the studio continued to develop its ongoing projects, and the recent announcement of a new game indicates a possible rebound or new phase. Microsoft’s broader focus on expanding its gaming division has included investments in new technologies and partnerships, with Undead Labs positioned as a key player in this strategy.
“We are excited to share that we are working on a new project that will bring fresh experiences to our players. More details will be shared when ready.”
— Undead Labs spokesperson

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Details of the New Project and Restructuring Impact
Specific details about the new game, including its genre, scope, and release timeline, remain undisclosed. It is also unclear how the restructuring will affect the studio’s staffing and long-term plans, as Microsoft has not provided detailed updates.
Industry sources suggest that further announcements could be made in the coming months, but official confirmation is pending.

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Expected Updates and Future Announcements
Undead Labs is expected to provide more information about its new project in upcoming industry events or through official channels. Microsoft may also clarify the scope of the restructuring and its impact on the studio’s development pipeline. Fans and industry watchers should monitor official statements for further details.

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Key Questions
What is the new project Undead Labs is working on?
The studio has not yet disclosed specific details about the new project, including its genre, gameplay, or release date. It is currently in early development stages.
How does this announcement relate to recent restructuring at Undead Labs?
The announcement comes after reports of internal restructuring, including layoffs and leadership changes. It suggests the studio is moving forward with new creative efforts despite these challenges.
What does this mean for fans of State of Decay?
While no direct updates about State of Decay have been provided, the new project indicates that Undead Labs is exploring new directions, which could eventually lead to new entries or related content.
Will Microsoft comment on the restructuring or new project?
As of now, Microsoft has not issued detailed comments. Future official statements are expected as the project develops.
Source: google-trends