Microsoft and Undead Labs have unveiled the first gameplay footage for State of Decay 3 while confirming that the zombie survival title is scheduled to launch in 2027.
The new gameplay trailer was shown during the Xbox Games Showcase 2026, offering the most substantial look yet at the long-awaited sequel. The presentation highlighted the game’s survival mechanics, community management systems, settlement building, and large-scale encounters with the undead.
Undead Labs emphasized the importance of cooperation and rebuilding society in a world devastated by the zombie apocalypse. Describing the game, the studio stated, “The zombie apocalypse nearly wiped out humankind. Years after the initial outbreak, carve out a life for yourself in a world gripped by blood plague. Play as a community of survivors, build up your settlements with friends, and destroy zombies in State of Decay 3.”
The gameplay footage showcased survivors scavenging resources, defending settlements, and working together against increasingly dangerous threats. The trailer also provided a closer look at the game’s blood plague-infected world, which appears significantly larger and more detailed than previous entries in the series.
State of Decay 3 is being developed on Unreal Engine 5 and represents the franchise’s most ambitious installment to date. The game expands upon the foundation established by its predecessors with a greater focus on cooperative play, allowing up to four players to work together while managing and growing their survivor communities.
Microsoft also confirmed that State of Decay 3 will launch as an Xbox Play Anywhere title and will be available through Xbox Game Pass on day one.
Developed by Undead Labs and published by Xbox Game Studios, State of Decay 3 is currently scheduled for release in 2027 for PC, Xbox Series X|S, and PlayStation 5. Further details regarding the game’s exact launch date are expected to be shared closer to release.


