Undead Labs and Microsoft Studios' upcoming open-world, zombie-survival game, State of Decay was on display at PAX Prime last weekend, enabling gamers and press alike to have a good idea of how the game mechanics work, what the combat looks like and what the driving is like.

The video is one of many from YouTube commentators providing audible oratory over a visual playthrough of the game. The one we're showcasing below is from GhostRobo, who gives a little bit of insight into the game while also showcasing a lot of the actual gameplay. In fact, there's about five minutes of actual gameplay for you to view, which you can check out below.

This makes State of Decay look rather promising, especially the ability to construct houses and facilities in the open world in real-time. The best part about it is that construction takes place in the same shard as the rest of the characters and zombies, so you don't have to worry about buildings and facilities only appearing in instanced areas like DayZ or The War Z.

Now the melee looks like trash in the video because it's still in pre-alpha and the same can be said of the driving. The team still has to flesh this stuff out before it releases next year. But what they do show looks very interesting and like it could be a load of fun.

Now some gamers have been saying that the game is trying to cash in on the DayZ craze and other gamers have been saying State of Decay is running on new tech and that originally it was in development way before DayZ, back when it was formerly known as Class 3. That's a fair enough argument but the game didn't get a rename and a redo until DayZ got popular and if the game had been in development for so long there's still a lot of lack of polish in everything except the construction kit.

Just based on the observation of the way game works, I'd suspect that the game wasn't making a lot of positive progress for a while and lacked proper production direction. The one million or so sales of Arma II due to DayZ sparked a fire in the eyes of an exec and bam! They repackaged what they had of Class 3 into State of Decay and set a deadline to cash in on the craze before interest dries up.

The above may or may not be what happened, but it's not unlikely given that it's the same thing that happened with I Am Alive, which was a vastly different game that was announced back at E3 in 2008 from what was released earlier this year. The major change came after The Last of Us made post-apocalyptic commentary in a survival setting a cool gameplay element and a prime selling point.

Anyway, State of Decay is set for release in early 2013 exclusively for Xbox Live Arcade. You can learn more by visiting the Official Website.

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