Microsoft may close State of Decay developers Undead Labs as part of Xbox’s imminent hewing back of projects and livelihoods, with Elder Scrolls studio Bethesda and World of Warcraft creators Blizzard also facing significant layoffs in the course of what an anonymous insider has called “the biggest single cut series for Xbox”. To put that quote in context, the company laid off around 1900 Microsoft gaming workers back in January 2024. Xbox unions are even now haggling with management to…