Undead Labs: The Studio Behind State of Decay 3
State of Decay 3 is developed by Undead Labs — the Seattle studio behind the entire State of Decay series — and published by Xbox Game Studios, with Undead Labs operating as a Microsoft-owned studio. Studio head Philip Holt and creative director Kevin Patzelt lead the project.
Studio at a glance
| Studio | Undead Labs |
| Location | Seattle |
| Ownership | Microsoft (Xbox Game Studios) |
| Studio head | Philip Holt |
| Creative director (SoD3) | Kevin Patzelt |
| Track record | State of Decay (2013), State of Decay 2 (2018) |
| Current project | State of Decay 3 — February 2027 window, Unreal Engine 5 |
"The game was in a Word document"
The defining story of this project: when State of Decay 3 was announced in July 2020 with a Blur Studio CGI trailer, the game effectively didn't exist yet. Studio head Philip Holt said it plainly on the Sunny Games podcast (reported by VGC in April 2026): "The game was in a Word document, there was really like the very beginnings of software."
At announcement, the project had roughly 4–5 people on it. Most of the team spent the following years maintaining State of Decay 2 with ongoing updates before rolling onto State of Decay 3 production. That is the real explanation for the near-six-year silence between the 2020 cinematic and the first gameplay — and why outlets like Kotaku framed the June 2026 reveal as "long-delayed."
From concept to in-game footage
The June 7, 2026 reveal at Xbox Games Showcase was the studio's answer to years of skepticism: a trailer of 100% in-game capture, with Kevin Patzelt confirming the over-the-shoulder camera as the actual playable view — the trailer page breaks down what it showed. The scope on display is concrete: a world about 4× the size of a single SoD2 map, untethered 4-player co-op, and a settlements network. Alpha playtesting is already running with real players, and a beta is planned — signup details here.
Mini FAQ
Who owns Undead Labs? Microsoft — the studio operates under Xbox Game Studios, which also publishes State of Decay 3.
Who is directing State of Decay 3? Kevin Patzelt is creative director; Philip Holt is studio head.
Why did State of Decay 3 take six years to show gameplay? It was announced in 2020 before development had really begun — only 4–5 people were on it, and the wider team was still supporting State of Decay 2. Development scaled up afterward, and the first gameplay arrived in June 2026.
Sources: VGC, Xbox Wire, Wikipedia. Last updated June 11, 2026.