Microsoft’s portfolio of first-party Xbox Game Studios projects appears to be gaining renewed momentum, with recent insights shedding light on the progress of Fable and State of Decay 3. According to Windows Central editor Jez Corden, fans can expect a development update on Fable as early as January, while State of Decay 3 may not see release until 2027.
The comments surfaced on X (formerly Twitter) in response to user inquiries about the status of both titles. When asked about Fable, Corden stated that players should “get a nice update in January,” offering a hint of reassurance to fans eager for news after a period of relative silence. In a separate exchange regarding State of Decay 3, he added that the game is currently “2027,” explaining that it has received “additional investment” and is regarded internally as a “hero project,” though he expressed uncertainty about how that might influence Microsoft’s broader projections.
The development of Fable has been a point of interest since the original studio, Lionhead Studios, was shuttered in 2016, resulting in the cancellation of Fable Legends. Reports of a new title began circulating the following year, and in 2018, Playground Games—known for its acclaimed Forza Horizon series—was confirmed to be developing the reboot. The game was officially revealed at the Xbox Games Showcase in July 2020 as a “new beginning” for the franchise.
Meanwhile, State of Decay 3 remains in development as the next installment in Undead Labs’ open-world survival franchise. Set in a post-apocalyptic world where humanity struggles to rebuild amidst a lingering zombie threat, the title has been described as a major technical and narrative leap forward for the series. Despite its prolonged development cycle, the reported new funding and internal prioritization suggest that Microsoft is committed to ensuring the project reaches its full potential.
Microsoft Game Studios has encountered multiple setbacks recently, including the cancellation of projects like the Perfect Dark reboot and Contraband. Additionally, the departure of several key figures from the Halo studio indicates potential difficulties for the franchise. To successfully deliver on its announced projects, Microsoft will need all the resources at its disposal. This includes titles such as Elder Scrolls VI, Fable, State of Decay 3, Marvel’s Blade, Clockwork Revolution, and the recently announced Forza Horizon 6.
