Undead Labs has announced that the next major State of Decay 2 update will be the game's last as the studio pivots towards working on State of Decay 3, but don't worry - State of Decay 2 isn't going anywhere.
In a news post on the game's official website, Undead Labs says that State of Decay 2's Update 38 will be its "final update", and that it'll "fix some longstanding issues", bring extra quality-of-life improvements, and "permanently unlock seasonal or otherwise previously-gated content".
Additionally, although updates and content drops for State of Decay 2 are coming to an end, that doesn't mean the game itself is shutting down. Undead Labs says that whether you own the game or you're playing on Game Pass, State of Decay 2 will "continue to be available".
With that said, Undead Labs does say it "won't be creating new content or supporting" State of Decay 2 after Update 38, so if something does go wrong, it might not get fixed.
Bounties from the Bounty Broker will continue to cycle, and all of your saved games and communities won't be affected. However, if you do find a bug that's messing up your game after the shutdown, Undead Labs says it won't accept bug reports, so you're on your own.
We don't have a release date for Update 38 yet, but Undead Labs says it's coming "later this year". There may also be "at least one hotfix" following the update, but only if Undead Labs deems it necessary.
Undead Labs closes out its FAQ by commenting on State of Decay 3, which was first announced all the way back in 2020 (and which we also got to see more of during this year's Xbox showcase in June).
Per Undead Labs, more info about the game and its release will be shared "at a later time", which isn't much to go on, admittedly. In the meantime, you can check out State of Decay 2 on PC and Xbox One (and on Xbox Series X|S via backwards compatibility).