Dambuster Studios hints at Dead Island 3 in new Steam post

Dambuster Studios has teased the development of Dead Island 3 in a new Steam post celebrating the franchise’s 14th anniversary and Dead Island 2’s 20 million players. The post features protagonist Jacob leaving Los Angeles, hinting at a new setting for the next zombie outbreak. With Dead Island 2 overcoming a troubled development cycle to become a hit, fans are hopeful that the third entry will have a smoother launch. Speculation points to a desert location like Las Vegas, with an official reveal potentially coming at The Game Awards or in 2026.

Dead Island 3

It appears that zombie fans won’t have to wait too long for their next undead-slaying adventure. Dambuster Studios has strongly hinted that Dead Island 3 is in active development, teasing the next chapter of the franchise in a new Steam post.

The announcement comes as part of a celebration marking the Dead Island franchise’s 14th anniversary and the milestone of over 20 million players taking on the undead in Dead Island 2. The Steam post features a striking image of protagonist Jacob leaving Los Angeles with a suitcase and the cryptic phrase, “When there’s no more room in Hell-A…” — a nod that the next game could explore a fresh setting for the zombie outbreak.

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The post further teased fans with the line, “Dambuster Studios are already carving out what comes next. For now, the details stay under wraps, the outbreak is far from over…” making it clear that a third entry is on the horizon.

This news follows the unlikely success story of Dead Island 2, which launched in early 2023 after a famously turbulent development cycle. First announced in 2014, the game switched hands between three different studios — Techland, Yager Productions, and Sumo Digital — before finally landing with Dambuster, which managed to deliver a critically and commercially successful title.

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Given how polished Dead Island 2 turned out despite its troubled history, fans are optimistic that Dead Island 3 will enjoy a much smoother development process. Speculation is already building about where the next game could take place, with many suggesting a desert city like Las Vegas as a possible setting.

An official reveal could come as soon as The Game Awards later this year, though a 2026 announcement and release window may be more realistic. Either way, Dambuster seems ready to unleash the next outbreak.

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