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EXCLUSIVE: Ubisoft Cancels Alterra, Its Animal Crossing-Inspired Game

Another Ubisoft game has found itself on the chopping block. Insider Gaming has learned that its in-development game Alterra has officially been canceled.

The news was broken to staff working on the game on Tuesday, and they were all sent home for the day.

There were no layoffs announced at the time of cancellation. Employees working on the game were put on availability for other projects within the company. That said, it’s unclear what all this means for the support studios that had been working on the game as well.

First reported by Insider Gaming in 2024, Alterra was a social-sim game inspired by Animal Crossing. The game featured a voxel art style and mechanics similar to Minecraft, where players could build what they want with gathered materials.

Images seen in the past by Insider Gaming show Matterlings—the NPCs in the game—that look similar to Funko Pop characters. The world consisted of different biomes that housed unique creatures and materials to meet, fight, and gather.

Alterra had been in development for nearly three years at Ubisoft Montreal at the time of its cancellation. It was being led by creative director Patrick Redding and lead producer Fabien Lhéraud.

Its cancellation comes at a time when Ubisoft has shut down multiple projects amid continued restructuring. In February, Ubisoft shut down six games, including Prince of Persia: The Sands of Time Remake and an Assassin’s Creed multiplayer title. Then, in March, the French studio ended game development at Red Storm Entertainment.

What do you make of Ubisoft cancelling Alterra? Leave your thoughts in the comments below, and in this official Insider Gaming Discord.


In other news, read about employees at Build a Rocket Boy taking legal action against the studio. And for even more Insider Gaming delivered directly to your inbox, sign up for our newsletter.

Written by
Mike Straw
Executive Editor

Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…

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