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Ubisoft Reportedly Cancels Animal Crossing‑Style Project 'Alterra'

The move reflects a portfolio cleanup tied to stricter project reviews under recent cost cuts.

Overview

  • Ubisoft told the Montreal team on Tuesday, according to Insider Gaming, and employees were reassigned to other projects with no layoffs reported.
  • Ubisoft did not directly confirm the cut and instead issued a broad statement saying projects that no longer meet strategic or quality targets may be discontinued.
  • Alterra had been in development for nearly three years at Ubisoft Montréal under creative director Patrick Redding and lead producer Fabien Lhéraud.
  • The unannounced game was described as a social sim influenced by Animal Crossing with a voxel look, Minecraft‑like building, and NPCs called Matterlings across varied biomes.
  • Coverage links the decision to Ubisoft’s partnership with Tencent and a companywide cost‑reduction program that has already driven layoffs, studio changes, and other cancellations.