Dead Island 3 Officially Confirmed for 2028 – And Every Single Developer at Dambuster Is Already Working On It

Dead Island 3 Is Real and Coming in Three Years

Dambuster Studios’ financial statements for the year ending March 2025 officially confirmed Dead Island 3 is in development with a target release window of Q1/Q2 2028. The British regulatory filing, spotted by industry analyst Timur222, reveals that all 194 employees at the Nottingham-based studio are now assigned to the zombie survival sequel. Once Luna and Mac versions of Dead Island 2 finish development, the entire QA team will also transition to testing the third installment.

This marks the first official acknowledgment of Dead Island 3 beyond vague teases. Dambuster hinted at the sequel during Dead Island’s 14th anniversary celebration earlier in 2025, posting on Steam that “the details stay under wraps, the outbreak is far from over.” But the financial report removes all ambiguity, explicitly naming the project and outlining its development timeline. Parts of the game are already in early production, including feature design, character design, world design, and narrative.

The 2028 release window places Dead Island 3 approximately five years after Dead Island 2’s April 2023 launch. That’s a dramatically shorter gap than the nearly decade-long development hell that plagued the second game, which cycled through multiple studios before Dambuster rescued the project in 2019 and actually shipped it. If Dambuster hits the 2028 target, it demonstrates they’ve learned from Dead Island 2’s chaotic production and established a sustainable development pipeline.

Every Single Person Is Working On This

The financial report emphasizes that all developers at Dambuster Studios are currently assigned to Dead Island 3. That’s 194 people focused entirely on a single project, with zero distractions from other games or side initiatives. The remaining few employees working on Luna and Mac ports of Dead Island 2 will join the Dead Island 3 QA team once those versions ship, consolidating the entire studio around the sequel.

This all-hands approach suggests Dambuster and parent company Deep Silver learned lessons from Dead Island 2’s troubled development. That game bounced between Techland, Yager Development, Sumo Digital, and finally Dambuster across nearly ten years of production. Each studio handoff reset progress, wasted resources, and delayed the project further. By committing every resource to Dead Island 3 from the start, Dambuster is betting that focused development beats fragmented efforts.

The scale also indicates ambition. Dead Island 2 shipped with six playable characters, multiple Los Angeles districts to explore, and two substantial story expansions in Haus and SoLA. If Dead Island 3 requires the entire studio working for three years minimum, expect a significantly larger scope than the predecessor. Whether that means more locations, deeper RPG systems, expanded co-op features, or entirely new gameplay mechanics remains unknown until Dambuster decides to talk about the project publicly.

Development Status Breakdown

• 194 employees assigned to Dead Island 3 as of March 2025
• Target release window: Q1/Q2 2028 (January – June)
• Early production underway for features, characters, world, narrative
• QA team will transition from Dead Island 2 ports to testing sequel
• Approximately 3 years of development time from current stage to launch
• All studio resources consolidated on single project
• No other Dambuster games announced or in development

Dead Island 2’s Commercial Success Justified a Sequel

The decision to greenlight Dead Island 3 makes financial sense given Dead Island 2’s performance. Embracer Group reported in its 2024 fiscal year results that Dead Island 2 sold over 3 million copies and reached more than 7 million players through Xbox Game Pass. The game exceeded management expectations and became the largest launch in Deep Silver’s history when measured by units sold and revenue generated during the initial seven-day period.

Dead Island 2 hit 1 million sales within its first weekend after launching April 21, 2023. One month later, sales doubled to 2 million units. By October 2024, the game crossed 3 million in direct sales while simultaneously accumulating millions of Game Pass players who accessed it day-one through Microsoft’s subscription service. That dual revenue stream from traditional sales and Game Pass payouts created a profitable scenario even accounting for the game’s lengthy development costs.

The success is particularly impressive considering Dead Island 2 launched as an Epic Games Store exclusive on PC, limiting its audience compared to Steam availability. The game only arrived on Steam in April 2024, a full year after initial release. Despite that handicap, sales remained strong enough to justify continuing the franchise. If Dead Island 3 launches simultaneously across all platforms including Steam, it could significantly outperform its predecessor commercially.

Dambuster’s Financial Health According to UK Filings

The same financial statements revealing Dead Island 3 also show Dambuster Studios’ overall business health. For the year ending March 2025, the studio reported revenue exceeding $21 million, representing a modest 1 percent increase compared to the previous year. Gross profit rose more substantially by 4 percent to $19.5 million, indicating improved margins despite relatively flat top-line revenue.

Profit before tax declined to £370,686 from the previous year’s £702,988, suggesting increased operating expenses likely related to ramping up Dead Island 3 development. Early production phases typically require significant upfront investment in pre-production, engine work, and building out the core team before revenue from new releases materializes. The profit drop aligns with typical patterns for studios transitioning from shipping a successful game to starting its sequel.

Employee count remained stable at 194 workers as of March 2025, up slightly from 192 the previous year. This stability is noteworthy given the broader gaming industry’s brutal layoff wave throughout 2024 and early 2025. Parent company Embracer Group underwent massive restructuring that shuttered studios like Volition and Free Radical Design while slashing staff across multiple subsidiaries. Dambuster avoided those cuts, suggesting Dead Island 2’s success insulated the studio from Embracer’s cost-cutting measures.

Dead Island 2’s Nearly Decade-Long Development Hell

Understanding Dead Island 3’s significance requires context about Dead Island 2’s nightmarish production. Announced in 2014, the zombie action RPG suffered constant delays and developer changes across an eventful nine-year cycle. Original developer Techland, which created the first Dead Island, didn’t return for the sequel. Deep Silver handed the project to German studio Yager Development, known for Spec Ops: The Line.

Yager worked on Dead Island 2 for three years before Deep Silver canceled that version and moved development to UK-based Sumo Digital in 2016. Sumo Digital’s take on the game also failed to ship, and Deep Silver moved the project again in 2019, this time to internal studio Dambuster Studios. By that point, Dead Island 2 had been in development for five years with nothing to show publicly beyond early trailers that no longer represented the actual game being built.

Dambuster essentially restarted development from scratch, keeping some concepts from previous iterations while rebuilding the game on their own technology foundation. The studio finally delivered Dead Island 2 in April 2023, nearly a decade after the initial announcement. Despite the troubled development, reviews were generally positive, praising the gory combat, satirical tone, and fun co-op gameplay while acknowledging rough edges and limited ambition compared to modern open-world standards.

What We Know About Dead Island 3 So Far

Beyond the confirmed existence and 2028 target window, Dambuster hasn’t revealed anything substantive about Dead Island 3. No story details, setting, playable characters, gameplay innovations, or visual targets have been announced. The financial report only confirms that early production is progressing on character design, world design, feature design, and narrative. That’s standard pre-production work before full development ramps up.

Fans are already speculating about potential directions. Dead Island 2 stayed in Los Angeles, specifically the fictional Hell-A version of LA devastated by zombie outbreak. The first Dead Island took place on a tropical resort island called Banoi. Dead Island: Riptide, the standalone expansion to the first game, remained in tropical settings. If Dambuster wants to differentiate Dead Island 3, choosing a completely different climate and location would help establish distinct identity.

The game will almost certainly retain Dead Island 2’s focus on melee combat with improvised weapons, gory dismemberment systems, and four-player co-op. Those mechanics define the franchise. But Dead Island 3 could expand RPG elements, introduce vehicles for traversal, implement larger open-world zones, or add new progression systems that give players more build variety. Dambuster has three years to iterate and innovate while maintaining the core appeal that sold millions of copies.

The 2028 Release Window Is Ambitious

Targeting Q1/Q2 2028 means Dead Island 3 needs to ship between January and June of that year, roughly three years from the March 2025 financial report date. That’s an aggressive timeline for a modern AAA game, especially one developed by a 194-person studio rather than a thousand-employee behemoth like Rockstar or Ubisoft. Most contemporary AAA titles require 4-6 years from pre-production to launch, and that’s before accounting for inevitable delays.

However, Dambuster has advantages that could make 2028 realistic. They’re building on technology and systems established during Dead Island 2 development rather than starting from zero. The studio knows the franchise’s creative direction and doesn’t need years exploring what the game should be. Employee count remained stable, avoiding the brain drain that happens when key developers leave mid-project. And parent company Deep Silver has strong financial incentive to support the sequel given how well Dead Island 2 performed.

Still, the gaming industry is littered with missed release targets and delayed games. BioWare promised Dragon Age: Dreadwolf for years before it finally shipped in 2024 as Dragon Age: The Veilguard. Rockstar’s GTA 6 has been in development since at least 2018 with no confirmed release date. Even relatively smaller projects like Hollow Knight: Silksong took six years from announcement to launch. Predicting game releases three years out is optimistic under the best circumstances.

Embracer’s Ongoing Restructuring Impact

Dambuster Studios operates under Deep Silver, which is owned by Embracer Group. That corporate structure matters because Embracer underwent catastrophic restructuring after a $2 billion deal with Saudi-backed Savvy Games Group collapsed in 2023. The failed deal triggered aggressive cost-cutting that shut down multiple studios, canceled numerous projects, and laid off thousands of employees across Embracer’s portfolio.

Embracer subsequently announced plans to split into three separate publicly traded companies: Asmodee Group focusing on tabletop games, Coffee Stain & Friends handling indie and mid-tier titles, and Middle-earth Enterprises & Friends managing AAA development and major IP like Lord of the Rings. Deep Silver and Dambuster Studios fall under the Middle-earth Enterprises & Friends umbrella, alongside studios like 4A Games, Warhorse Studios, and Tripwire Interactive.

This restructuring creates uncertainty about Dead Island 3’s long-term support and budget. If Embracer’s financial situation deteriorates further, projects could get canceled even after years of development. We’ve seen it happen repeatedly during this generation. But Dead Island 2’s commercial success should protect Dambuster from the worst outcomes. Embracer needs reliable revenue generators, and a franchise that sold 3 million copies while achieving 7 million Game Pass players qualifies as exactly that.

Frequently Asked Questions

When does Dead Island 3 release?

Dambuster Studios targets Q1/Q2 2028, meaning January through June of that year. However, this is an internal target subject to change. Official announcements with confirmed dates haven’t been made yet.

How many people are working on Dead Island 3?

All 194 employees at Dambuster Studios are currently assigned to Dead Island 3 as of March 2025. Once Dead Island 2’s Luna and Mac ports finish, the remaining QA team will also join the project.

What platforms will Dead Island 3 be on?

Not announced yet. Expect PlayStation 5, Xbox Series X/S, and PC at minimum. Whether it comes to last-gen consoles or next-gen hardware that may launch before 2028 remains unknown.

How well did Dead Island 2 sell?

Over 3 million copies sold directly, plus more than 7 million players through Xbox Game Pass. It became Deep Silver’s largest launch in company history when measured by first-week revenue and units sold.

Will Dead Island 3 be on Game Pass day one?

Unknown. Dead Island 2 arrived on Game Pass nine months after its initial April 2023 launch. Whether Deep Silver negotiates day-one Game Pass access for the sequel depends on Microsoft’s deal structure and how Embracer’s restructuring affects publishing strategies.

What happened to Dead Island 2’s development?

Announced in 2014, Dead Island 2 cycled through three developers: Yager Development, Sumo Digital, and finally Dambuster Studios, which shipped the game in April 2023 after restarting development from scratch in 2019.

Is Dead Island 3 related to Dead Island: Riptide?

Dead Island: Riptide was a standalone expansion to the first Dead Island, not a full sequel. Dead Island 3 continues the numbered series, following Dead Island (2011) and Dead Island 2 (2023).

Who owns Dambuster Studios?

Dambuster Studios is owned by Deep Silver, which is owned by Plaion (formerly Koch Media), which is owned by Embracer Group. Embracer is splitting into three companies, with Dambuster falling under the Middle-earth Enterprises & Friends division.

Will Dambuster Hit the 2028 Target?

Dead Island 3’s confirmation via financial filings rather than a splashy trailer or press release tells you everything about where the project currently stands. It’s early. Really early. Character design and world design are still in progress. The studio is building the foundation before constructing the actual game. Three years sounds like plenty of time until you account for how complex modern game development has become and how often ambitious projects slip their targets.

But Dambuster has one critical advantage: they actually shipped Dead Island 2 after rescuing it from development hell. That demonstrates institutional competence and the ability to see complex projects through to completion under pressure. Many studios talk about upcoming games that never materialize. Dambuster proved they can deliver, and they did it by taking over someone else’s mess and turning it into Deep Silver’s biggest launch ever.

Whether Dead Island 3 arrives in early 2028, late 2028, or slips into 2029 matters less than whether it maintains the quality that made Dead Island 2 a commercial success despite its troubled production. Fans waited nearly a decade for Dead Island 2. They’ll wait an extra six months for Dead Island 3 if it means getting a polished, feature-complete zombie survival game instead of a rushed, broken mess.

For now, all we can do is wait for official announcements. Dambuster will show the game when they’re ready, likely at a major gaming event once they have actual gameplay to demonstrate rather than just concept art and vision statements. Until then, the financial filings confirm what fans hoped: Dead Island 3 is real, it’s in development, and if everything goes according to plan, we’ll be dismembering zombies in a new location sometime before 2029. The outbreak is far from over.