Escape Dead Island: Underwater Labs

Undead Labs, the team behind the State of Decay series, was revealed to be among the Microsoft-owned studios under threat of closure. Undead Labs is currently working on survival shooter and management sim State of Decay 3, and the game was part of the Xbox Showcase earlier this month. Read more

Amid reports that Microsoft is planning massive layoffs in its Xbox gaming division, first-party studios like Double Fine, Compulsion Games, and Ninja Theory have been rumored to be in talks to avoid total closure. Now, State of Decay developer Undead Labs is said to be facing the same fate if a potential buyer can't be found. According to GamesBeat and Windows Central, Undead Labs is one if the studios that Microsoft may unload following the end of its current fiscal year on June 30. What makes this move so surprising is that Undead Labs' State of Decay 3 has been given a promotional push by

As Xbox cuts ties with Ninja Theory, Compulsion, and Double Fine, Undead Labs' case is the worst but not the only case of mismanagement

State of Decay 3 developer Undead Labs is in danger of being shut down or sold off by Xbox. The gaming giant is preparing significant layoffs.

Don't pee in the pool.