Dead Island 3 Is in Development at Dambuster Studios; Launch Planned for 2028

Dead Island 3 is in the works at developer Dambuster Studios and is targeting a launch in early 2028, the developer confirmed its in financial report. The studio said the sequel has been its primary focus since the release of Dead Island 2 Ultimate Edition in October 2024. Parts of the game were in early production, the financial statement said.

Dead Island 3 Targeting 2028 Launch

The information came as part of Dambuster's annual report and financial statements for the year ended March 31, 2025 (first spotted by X user @bogorad222). The document confirms the studio's plans for Dead Island 3 — the game had not been announced previously.

Development on Dead Island 3 is underway, with the studio targeting launch in the first or second quarter of 2028. As per the document, the studio's primary focus shifted to Dead Island 3 after the release of Dead Island 2 Ultimate Edition in October 2024.

All developers at the studio have been assigned to work on Dead Island 3. Parts of the game were in “early production” and “feature, character, world, and story design” were moving “at pace,” the document said.

In September, Dambuster teased what was next for the Dead Island franchise without explicitly mentioning Dead Island 3.

“This isn't the final cut though. Dambuster Studios are already carving out what comes next,” the studio had said in a Steam post confirming that Dead Island 2 had reached 20 million players. “For now, the details stay under wraps, the outbreak is far from over...”

The post also mentioned the locations from the first two Dead Island games, suggesting a third one was in the works: “From Banoi to HELL-A...and the next outbreak is already brewing.”

Dead Island 2 released on PC, PS4, PS5, Xbox One, and Xbox Series S/X on April 21, 2023. A macOS version of the game launched in July 2025.