Ubisoft Cancels Animal Crossing-Inspired Game - Report

Ubisoft has canceled Alterra, an in-development cozy game inspired by Animal Crossing, according to reports from Insider Gaming. The cancellation was announced to staff at Ubisoft Montreal on Tuesday.

Alterra was conceived as a social-simulation game featuring voxel art, crafting, gathering, and building mechanics similar to Minecraft. Players would gather materials to construct and customize their own spaces within the game world.

The cancellation marks another addition to Ubisoft’s growing list of canceled projects in 2024-2025. The company has previously canceled or delayed multiple titles, including the Prince of Persia: The Sands of Time remake.

According to the reports, no layoffs were announced in connection with the cancellation. Instead, all staff members working on Alterra have been reassigned to other projects within Ubisoft, and support studios involved with the game are being evaluated for reallocation.

In a statement to IGN, Ubisoft explained the decision as part of its portfolio management strategy. A company spokesperson stated that the company continuously assesses projects at every stage of development to ensure alignment with strategic priorities, quality ambitions, and long-term market potential, and that projects no longer meeting these expectations may be discontinued.

This reflects Ubisoft’s broader shift in evaluating its game pipeline, prioritizing strategic alignment and commercial viability over maintaining projects that may not meet internal benchmarks.

Sources