Ubisoft reportedly cancels Animal Crossing-style project Alterra

Ubisoft has reportedly scrapped Alterra, an unannounced life sim that had been compared to Animal Crossing. According to Insider Gaming’s report, staff were told about the cancellation on April 22.

The report says there were no layoffs tied to the decision, with developers instead being moved onto other projects. Alterra was reportedly being made at Ubisoft Montreal and had been in development for around 18 months.

Earlier reporting described Alterra as a cozy life sim with voxel building elements. Patrick Redding was said to be directing the project, with Fabien Lhéraud as lead producer.

Ubisoft didn’t comment on Alterra directly when asked by IGN, but said it regularly reviews projects and may discontinue ones that no longer fit its priorities, quality targets, or long-term market potential.

The cancellation lines up with a broader round of cuts and restructuring at Ubisoft this year. The company recently rolled out its Creative House structure, cancelled multiple projects, and said it was aiming for €200 million in savings through cost-cutting and studio closures.

That wider push has already included the closure of Ubisoft Stockholm and Ubisoft Halifax, along with layoffs at Red Storm Entertainment last month. So while Alterra hadn’t been formally announced, its reported cancellation fits the pattern of Ubisoft narrowing its slate and trimming spending.