Summary
State of Decay 3was first announced all the way back in 2020 at the Xbox Games Showcase. The upcoming third entry in Undead Labs' open-world survival zombie series has been a long time coming, and the prevailing thought was that it would be released sometime in 2025. However, that may no longer be the case, as, according to a new report by Jez Corden,the wait forState of Decay 3will possibly extend into 2026. As Corden stated on a recent episode of his XB2 podcast, “It’s closer to being finished than you would think, but I think they are gonna let that one slip.”
Though the delay isn’t officially confirmed or denied by the developer or publisher Microsoft Game Studios at this time, Corden is known to be a reliable source, and thus fans may have good reason to put stock into the claim thatState of Decay 3won’t see the light of day until 2026. And while this is likely a disappointing development for those who are eagerly awaiting it, a possible delay might also come with a few upsides.

State of Decay 2’s final updatedropped in October 2024, with the studio then turning its full attention to the third title.
How State of Decay 3’s Rumored Delay Could Benefit It in the Long Run
State of Decay 3’s Development Has Been Slow, But Steady
Since its original unveiling nearly five years ago,State of Decay 3has seen sporadic but mostly positive updates and announcements regarding its progress. Earlier in 2024,Undead Labs revealed that it was receiving assistance from two other Microsoft-ownedstudios, Obsidian Entertainment (Fallout: New Vegas,The Outer Worlds) and The Coalition (now heading development on theGears of Warfranchise) onState of Decay 3. They were brought on to help fine-tune aspects likeState of Decay 3’s multiplayer co-op and optimize its switch to Unreal Engine 5.
Around the same time as the above, the most recenttrailer forState of Decay 3debuted at the 2024 Xbox Games Showcase. This served to assure fans that work onState of Decay 3was still continuing, and highlighted some of the new cinematics and other aspects players can look forward to in it. The trailer provided a timely and encouraging update, helping to reignite some of the excitement for it that was previously waning. While it may be taking its time,State of Decay 3has been steadily creeping along.
Why State of Decay 3’s Latest Rumored Delay Could End up Being Advantageous
While a delay would understandably be disappointing for those who were hoping to see it arrive in 2025,State of Decay 3’s potential push to 2026 could actually help it out in a couple of ways. Firstly, there are a slew ofzombie-centric games set to drop in 2025, all of which would presentState of Decay 3with some tough competition and risk it getting lost in the crowded field of other anticipated titles. Microsoft has delayed other games recently in order to better space out titles both for its internal release pace and for the wider schedule. It may thus be considering doing the same withState of Decay 3in light of this.
Another consideration is thatState of Decay 2experienced technical issues at launch, and it would be prudent for the third to take the time needed to avoid a similar situation. There are a number of elements and mechanicsState of Decay 3looks to improve on, and the decision to potentially give it another year or so in the oven could help in ironing out any kinks involved. Though it would mean fans have to remain patient,State of Decay 3being saved for 2026 could allow it the time needed to ensure the third entry is up to snuff, along with creating some separation from other adjacent titles, and give an optimal release window to stand out and deliver on its promises.