Ubisoft may be working on a new social simulation game, codenamed Alterra, which appears to be inspired by the success of Animal Crossing. It's been over four years since New Horizons revitalized Nintendo's beloved franchise, and after nearly eight years of waiting for the title to arrive following New Leaf, Animal Crossing fans might not have to wait as long for a similar experience this time.

Animal Crossing developed a dedicated fan base over the years, but New Horizons catapulted the series to even greater heights, becoming the second-best-selling game on the Nintendo Switch, surpassing titles like The Legend of Zelda: Breath of the Wild and Super Smash Bros. Ultimate. Since then, Nintendo has offered little information about the future of the franchise, aside from the mobile game Animal Crossing: Pocket Camp. However, rumors suggest that Ubisoft might soon fill the void for fans craving another cozy social sim.

According to an insider source who spoke to Insider Gaming, Alterra will follow a gameplay loop similar to Animal Crossing while incorporating building mechanics reminiscent of Minecraft. Development on the project reportedly began 18 months ago after Ubisoft canceled a similar title that was already four years into production. While numerous indie studios have tried to capture the Animal Crossing magic, the involvement of a major publisher like Ubisoft could make Alterra a standout.

Alterra will allegedly feature an island setting where players can interact with NPCs called Matterlings, a concept similar to Animal Crossing: New Horizons. Players will be able to visit other islands, meet new Matterlings, and gather unique resources, echoing New Horizons' gameplay. However, the game will also offer players the ability to build structures with the materials they collect, adding a Minecraft-like element. Given the natural synergy between Animal Crossing and Minecraft, combining elements of both makes sense for Ubisoft.

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The Matterlings in Alterra will not be direct analogs of Animal Crossing's villagers. While some will be based on real-world animals, others will include dragons, monsters, and other fantastical creatures. The art style will use a voxel-based design similar to Minecraft, with the Matterlings resembling Funko Pop figures. While all these details are unconfirmed, if the project is real, Alterra likely won't release for a few years. There are also whispers that Animal Crossing's next installment could arrive in 2026, though this remains speculative as well.