First, we can take a look at the time between State of Decay and State of Decay 2, which is five years from early summer of 2013 to late spring of 2018. Best case scenario that puts State of Decay 3 at 2023, if things were going great which is sounds like they aren’t.
Second, you have to factor that pandemic landing squarely in the middle of development and how well Undead Labs was able to pivot.
Third, a recent Kotaku report, is that the studio may be experiencing some growing pains after the success of the second game and are now dealing with common industry problems like crunch and toxicity. However, the article also noted that in recent years, post Microsoft acquisition, Undead doubled from 60, now have a new leadership team, 42 percent of recent hires were women or non binary, and 29% were visible minority. Some of the people interviewed felt that the studio was making the right moves and that major progress on State of Decay 3 could finally start happening.
Lastly, is that when speaking on the Kinda Funny Gamescast, Jeff Grubb went over an internal document from Microsoft about their games expected to release by 2023. High profile titles such as Avowed, Fable, and Perfect Dark but did not include State of Decay 3.
State of Decay has a track record of being release later in the life cycle as it came out in 2013, 8 years after the 360 came out and the sequel came out in 2018, five years after the release of Xbox One. Add that to the other reasons and 2024 seems like the earliest.
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