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Undead Labs studio head Philip Holt did not disclose how many employees left the studio during its separation from Xbox. He called the departures significant and said he was reluctant to reduce the effect on colleagues to a statistic.
What Philip Holt said about the number
Asked about the scale of the cuts in an interview published October 6, 2026, Holt told The Game Business: “I’ve been reluctant to share that number because these are our friends and colleagues, and it was a total heartbreak to have to part ways. I would hate to reduce the impact to those individuals to a number or statistic.” The Game Business
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
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State of Decay 2 | $37.32 | Buy on Amazon |
| 2 |
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State of Decay 2 - Xbox One (Renewed) | $27.19 | Buy on Amazon |
| 3 |
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State of Decay- Year-One Survival Edition | $35.99 | Buy on Amazon |
| 4 |
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State of Decay 2 - Ultimate Edition - Xbox One (Renewed) | $55.63 | Buy on Amazon |
Undead Labs’ September announcement described a “significant number” of colleagues leaving, but neither the statement nor the interview supplied a headcount. “Significant” is the studio’s qualitative description, not a confirmed number. Undead Labs
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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Why Xbox-wide layoff figures do not answer the question
Game Informer reported a planned reduction of more than 3,000 roles across Xbox in July 2026. That company-wide figure has a different scope and cannot be used to estimate how many Undead Labs employees were affected. No independent count or role-by-role breakdown for the studio is established in the cited coverage. Game Informer
#1 Best Overall
- State of Decay 2 is the ultimate open world zombie survival game Four Player Co-Op Multiplayer Establish a base, develop your characters and manage resources to survive in a post-apocalyptic world
- Xbox One X Enhanced with higher resolutions, steadier framerates and better effects
- Every decision has lasting consequences In the end, how you survive just might surprise you
- Pre-order now to get the Amazon exclusive Survivor’s Pack Includes the Zed Swatter melee weapon, an exclusive vehicle and an assortment of survival supplies and abilities - Codes will be received within 7 days of release
How the departures relate to Undead Labs’ independence
In September 2026, Undead Labs announced that it was becoming an independent, employee-owned studio. VGC reported that employees had bought the company after Xbox sought a buyer. The studio said it was saying goodbye to a significant number of colleagues as part of the transition. Video Games Chronicle
Holt described his approach to communicating with staff as “irresponsibly transparent.” He also said, “Rather than keeping them in the dark and manufacture some alternate reality, I just brought them alongside.” Those remarks are his account of how he communicated during an uncertain transition, not an independently measured assessment of employees’ experience. Video Games Chronicle
Rank #2
- State of Decay 2 is the ultimate open world zombie survival game Four Player Co-Op Multiplayer Establish a base, develop your characters and manage resources to survive in a post-apocalyptic world
- Xbox One X Enhanced with higher resolutions, steadier framerates and better effects
- Every decision has lasting consequences In the end, how you survive just might surprise you
- Pre-order now to get the Amazon exclusive Survivor’s Pack Includes the Zed Swatter melee weapon, an exclusive vehicle and an assortment of survival supplies and abilities - Codes will be received within 7 days of release
What is known about State of Decay 3
Some employees who left had worked on State of Decay 3, according to Undead Labs’ statement and Game Developer’s report. Game Developer
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In the October 6 interview, Holt said the transition did not require radically rescoping the game. He described it as being in alpha with a 2027 target release. That was the plan he gave at interview time, not a guarantee that the game would launch in 2027. The Game Business
Quick Recap
Rank #4
- State of Decay 2 Ultimate Edition includes early access to the full game, a code for the original State of Decay: Year One Survival Edition on console, and a code for two add-on content packs: Independence Pack and Daybreak Pack
- Build your community and invite up to three friends to explore an open world filled with hostile zombies Four Player Co-Op Multiplayer Establish a base, develop your characters and manage resources to survive in a post-apocalyptic world
- Model Compatibility: Xbox One;Xbox One X Enhanced with higher resolutions, steadier framerates and better effects
- Pre-order now to get the Amazon exclusive Survivor’s Pack Includes the Zed Swatter melee weapon, an exclusive vehicle and an assortment of survival supplies and abilities - Codes will be received within 7 days of release
Rank #3
- Unlocking Heroes: Lifeline Roster
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