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GamesBeat, Windows Central, GameSpot and others corroborate reports of Microsoft seeking a buyer for Undead Labs amid Xbox studio restructuring.

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Home/Gaming/Undead Labs Reportedly Facing Possible Shutdown
VERIFIEDBy Xavier Rivera· ·1 min read

Undead Labs Reportedly Facing Possible Shutdown

Overnight reports indicate Microsoft is seeking a buyer for Undead Labs, with its zombie survival title at risk of cancellation if none is found. The move is part of broader layoffs threatening hundreds of jobs across Xbox gaming studios including Double Fine, Compulsion, and Ninja Theory.

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Undead Labs Reportedly Facing Possible Shutdown
TL;DRAI · 60 sec read

Microsoft seeks a buyer for Undead Labs or may close the studio and cancel State of Decay amid Xbox job cuts. Similar sale talks involve Double Fine, Compulsion, and Ninja Theory. Hundreds of positions across Microsoft gaming, including Bethesda and Activision Blizzard, now face elimination after the survival game appeared at a recent Xbox showcase.

Overnight reports have raised alarms about the future of the zombie survival title and its studio, with both potentially on the chopping block amid planned job reductions at Xbox.
If no buyer emerges, the survival game may be canceled.
Efforts are underway to sell Undead Labs. Gamesbeat reported that Microsoft is working behind the scenes to find a buyer for the Seattle-based studio. Windows Central backed up the report. If no buyer emerges, the survival game may be canceled.
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Multiple Microsoft studios are in similar talks. The developer is one of several reportedly fighting to avoid closure. Double Fine, Compulsion, and Ninja Theory are also said to be in discussions with Microsoft over potential buyouts of themselves. Hundreds of jobs are at risk across Microsoft’s gaming business, including Bethesda and Activision Blizzard studios and publishing operations.
Ninja Theory management may not have even been aware of the plan.
The survival game appeared at a recent Xbox event. It was featured at Microsoft’s Xbox Games Showcase earlier this month along with Ninja Theory’s Senua. It is currently running playtests.
Microsoft’s approach to Ninja Theory raises questions. According to Game File, the company allegedly planned to close or spin off the Hellblade maker when it revealed Senua at the showcase event. Game File’s Stephen Totilo suggests Microsoft believed “the promise of a newly announced game would help draw investor interest in the studio.” Ninja Theory management may not have even been aware of the plan.
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