Undead Labs

Undead Labs is an American game development studio best known for creating the State of Decay zombie-survival franchise. Founded in November 2009 by Jeff Strain, the studio develops player-driven, open-world experiences built around survival, community management and the consequences of players’ choices. Its work combines action-adventure gameplay with base building, resource management and systems-driven storytelling.

The studio partnered with Microsoft Studios to release State of Decay on Xbox 360 and PC in 2013. The game sold more than two million copies and established the foundation for a continuing franchise. State of Decay: Year-One Survival Edition followed in 2015, bringing an expanded edition to Xbox One and PC. The sequel, State of Decay 2, launched in May 2018 on Xbox One and Windows.

Subsequent releases extended the series through narrative expansions, expanded editions and ongoing content updates. These included Heartland, Juggernaut Edition and Homecoming, reflecting the studio’s continuing work on both new games and the evolution of existing releases. The franchise has reached more than 20 million lifetime players.

Development and production

Undead Labs’ capabilities span full-cycle console and PC development, live operations, game animation technology and integration with co-development partners. Its technical work includes Unreal Engine 5 development, animation pipelines and motion capture, alongside the gameplay systems that underpin its survival-focused projects.

As of November 2026, the studio remains in full production on State of Decay 3, with a multi-platform release targeted for 2027 and third-party publishing backing secured.

Return to independence

Microsoft acquired Undead Labs in June 2018, bringing it into Xbox Game Studios. Following Microsoft’s announcement of divestment plans in July 2026, management and staff completed a buyout in September. The studio became independent and employee-owned, retaining its development presence in Washington, Florida and Illinois. The transition included staff reductions intended to establish a commercially sustainable operating structure.