Dead Island 3 may have only just been officially confirmed, but fans are already convinced they’ve uncovered the setting for the long awaited zombie sequel. While developer Dambuster Studios has yet to reveal where the next outbreak will take place, one theory continues to gain traction, suggesting the series could be heading to Australia.
The speculation stems from teaser artwork released by Dambuster, where eagle eyed fans spotted a boxing kangaroo sticker among several travel decals on a suitcase. Many believe it’s a subtle hint that Dead Island 3 will swap the streets of Los Angeles for Australia’s cities, coastline and unforgiving Outback. Others have pointed out an Ireland sticker in the same artwork, meaning the developer could simply be teasing multiple locations or deliberately encouraging fan speculation.
If Australia does end up being the setting, it would offer a fresh direction for the franchise, with players potentially battling the undead across bustling urban areas, remote towns and harsh wilderness filled with the country’s iconic wildlife. However, Dambuster has not officially confirmed the game’s location, so the Australia setting remains purely a rumour for now.
While the setting is still a mystery, one thing is now official. Dambuster Studios has confirmed that Dead Island 3 is in development through its latest financial statements. The documents reveal that the studio’s primary focus has shifted to the sequel, with all developers now assigned to the project. Once work on the Luna and Mac versions of Dead Island 2 is complete, the studio’s QA team will also transition to Dead Island 3.
According to the report, the game is currently in early production, with feature, character, world and story design all progressing. The documents also reference a current internal release target of Q1 or Q2 2028, although that timeline could still change as development continues.
Following the successful launch of Dead Island 2 in 2023, the confirmation of a full sequel marks the next chapter for the franchise. With development now officially underway and rumours surrounding a possible Australian setting continuing to circulate, fans will no doubt be keeping a close eye on future announcements from Dambuster Studios.