Ubisoft has not been in a good place so far in 2026, with the company seeing massive restructurings. The latest news to come out of Ubisoft is the reported cancellation of the title Alterra – a cozy game with a gameplay loop similar to titles like Animal Crossing and Minecraft. Reports about the title in previous years stated that the game would see players living on their own little island and that they would be surrounded by NPCs called Matterlings. Unfortunately, this is yet another game to be shut down after years of development.
Alterra Cancelled by Ubisoft
Alterra was first reported on back in 2024, and was said to be a social-sim title akin to games like Animal Crossing and Minecraft, allowing players to build their own world on an island alongside creatures called Matterlings. For the past few years, little had been mentioned about the title, but it was still in development. That is, until yesterday, when Insider Gaming shared news of the game’s cancellation.
Mike Straw from Insider Gaming stated, “The news was broken to staff working on the game on Tuesday, and they were all sent home for the day.” Luckily for the staff, there were no layoffs announced and employees working on the title were shifted to other projects within the company. Of course, this does not mean that there could not be future layoffs happening due to this cancellation.
The cancellation of Alterra comes at a rocky time for Ubisoft, as the company has recent gone through major restructuring, shutting down six other titles in previous months including the Prince of Persia: Sands of Time remake and an Assassin’s Creed multiplayer title. The company also shut down Red Storm Entertainment, resulting in the loss of 105 jobs. It is easy to say that this has not been the best year for Ubisoft, and it is hard to tell what will happen next with the company.
