Dead Island 3 Confirmed by Dambuster Studios with Teasers Suggesting New Setting

Dambuster Studios and publisher Deep Silver have officially confirmed that a new Dead Island game is in development. The announcement arrived on the 14th anniversary of the original Dead Island’s release, paired with a cryptic piece of artwork teasing potential settings and sparking fan speculation. While not explicitly called Dead Island 3, the phrasing “the next outbreak” strongly indicates that this is the long-anticipated sequel to 2023’s Dead Island 2.

The announcement highlighted the success of Dead Island 2, which has attracted more than 20 million players across direct purchases and Xbox Game Pass installs. The developers celebrated this milestone with a message reflecting on the franchise’s history and future.

"14 years ago, Dead Island made its gory debut. Today, Dead Island 2 has dragged 20 million Slayers into the sunny chaos of HELL-A. The next outbreak? Dambuster is already drenched in the work. The journey is far from over..." — Dead Island official account

The post included artwork showing Jacob, one of Dead Island 2’s characters, hitchhiking along a road with his suitcase and backpack. The luggage is covered in stickers, some referencing past locations in the series, such as the fictional Banoi Islands and Los Angeles. More intriguingly, however, one sticker clearly shows Ireland, while another depicts a boxing kangaroo, pointing toward Australia.

This has led to widespread speculation that Dead Island 3 may be set in Ireland, Australia, or perhaps both. When asked about the imagery, the developers coyly responded,

“I dunno, but that's a pretty picture we attached to the post huh?” — Dambuster Studios.

The background of the artwork offered no additional clues, meaning the stickers remain the only solid hints for now.

Dead Island 2, which launched in 2023 after years of development turmoil, was praised for its melee combat and visceral gore systems. It introduced HELL-A, a satirical take on Los Angeles, as its setting and expanded on the series’ signature co-op zombie-slaying formula. Its commercial success has seemingly paved the way for a more stable development cycle for the sequel. Dead Island 2 was nearly a disaster until Deep Silver reset the project, abandoning its troubled early builds to save the franchise.

Speculation on when Dead Island 3 might release depends largely on how long it has been in production. If Dambuster began work soon after Dead Island 2’s launch, fans might see the sequel as early as 2027. If development only started recently, however, a later release closer to 2030 could be possible. Still, the team is unlikely to repeat the nearly decade-long “development hell” of Dead Island 2, which changed studios multiple times before its eventual release.

The setting remains the biggest mystery at this stage. Ireland would represent a stark departure from the tropical or sunny backdrops of the earlier games, offering gloomy coasts, rural villages, and folklore-inspired horror potential. Australia, on the other hand, could provide exotic wildlife, sprawling cities, and desert landscapes to frame its zombie apocalypse. Both possibilities suggest Dambuster is considering bold new directions for the franchise.

What is certain is that the next Dead Island will carry forward the series’ identity: brutal melee combat, over-the-top satire, and chaotic co-op survival. The developers have not revealed gameplay details, platforms, or pricing yet, but given Dead Island 2’s availability across Xbox, PlayStation, and PC — along with its strong Game Pass performance — a similar release structure seems likely.

For now, players are left dissecting clues from a single image while waiting for more concrete information. Dambuster’s confirmation ensures that the Dead Island franchise will continue, but the form and timing of its return remain open questions. As the studio puts it, the journey is far from over, and the next outbreak is already in motion.