State of Decay 3, the survival horror game developed by Undead Labs, is reportedly not canceled, with closed beta testing still planned.
According to content creator Sunny Games, recent rumors claiming that State of Decay 3 has been canceled are untrue. He acknowledged that uncertainty still surrounds the studio following recent changes, but he insisted that development is ongoing and stated that he is much more optimistic than before.
"There is a lot of misinformation out there," said Sunny Games. "Let me say it again, folks, this game has not been canceled." While he admitted he couldn't reveal why his confidence had returned—due to undisclosed information—he added that despite remaining cautious about potential changes from the new publisher, he now feels "much, much better" about the project's future.
The content creator also cautioned that questions remain regarding what concessions or creative changes the new publisher might require. He stated that the direction, business model, and overall vision for State of Decay 3 could still change before release. He also claimed that the game's internal testing schedule has not been affected. According to him, Alpha Phase 2 has already begun, with invited testers currently participating under non-disclosure agreements (NDAs).
Sunny Games stated, "As far as I know, the Beta test is still planned," adding that he expects to participate as well, since he had taken part in earlier Alpha tests. He also explained that while the first two Alpha phases were limited to PC players, the planned closed beta is expected to include console players.
He also claimed that development on State of Decay 3 has been proceeding without interruption, with frequent updates pushed between Alpha milestones to bring improvements. He praised the latest build, stating that it shows a significant improvement over previously shown gameplay footage.
Additionally, Sunny Games revealed that he had contacted Philip Holt, head of Undead Labs, to ask if an interview could be arranged. Although no agreement has been reached yet, he stated that Holt did not directly reject the proposal, implying that any potential interview would likely depend on the stance of the game's new publisher.

