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There are four difficulty modes in State of Decay 2: Green Zone, Standard, Dread Zone, and Nightmare Zone.

Standard is the default State of Decay 2 experience.

Dread Zone is designed to offer new challenges to experienced players.

Nightmare Zone is a gruelling endurance test for hardcore players.

Green Zone is a more relaxed accessible experience.

Dread Zone Nightmare Zone Morale Penalty, but there are more temporary bonuses Same as Dread Zone Radio Commands Some cost more influence; many have longer cooldown Same as Dread Zone Minimap Does not show zeds without Scouting skill Same as Dread Zone Zed Hearing Gunshots are heard from farther away Same as Dread Zone Noisemakers Zeds will ignore if they have spotted a human Same as Dread Zone Plague Hordes Much larger Same as Dread Zone Juggernauts Are plague juggernauts Same as Dread Zone Siege Threat Level Higher Effect increased Facility Costs Some facilities and actions cost more Effect increased Zed Population Zeds and freaks are more numerous Effect increased Hordes Larger, more numerous, some wear armor Effect increased Zed Attacks Do more damage and cause more injuries Effect increased Zed Aggression Will chase survivors longer Effect increased, and they will call more zeds if they cannot reach the player Blood Plague Fewer hits to become infected; time to turn is shorter Effect increased Plague Hearts Tougher, fumes when damaged cause infection, hearts contain loot Effect increased, and there are more hearts Human Enemies More alert, do more damage, have more health Effect increased, and they can head shot the player, bringing them near death Scavenging Fewer resources; some locations pre-ransacked Effect increased Vehicles Fewer on map; many damaged and low on fuel Even fewer, with many broken down and out of fuel Food Consumed Survivors eat more XP/Standing Gains Penalty Freaks Can travel in packs Screamers Draw more zeds Guns More likely to break or jam

To read more in detail, check out Undead Lab's official announcement.