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Rayman Raving Rabbids was originally developed as a 3D platform game, under the working title Rayman 4. It was announced by Ubisoft on the 3rd of May, 2006, shortly after the cancellation of Phoenix Interactive's unrelated Rayman 4 project. Under development by Ubisoft Montpellier, the game was to be a free-roaming action platforming game, in which the player would control Rayman as he battled against an invading army of Rabbids. The game was announced for Sony PlayStation 3, Microsoft Xbox 360, PC, and the Nintendo Wii, which was then codenamed the 'Revolution'.
The game's story was intended to be simplistic, clichéd and ludicrous, in a parody of the storytelling devices that are standard in platform games. The goal was not a complex storyline, but a suitable framework for developing the characters and the situations. Ancel said of the game, 'It’s a comedy, like Mars Attacks or some Monty Python movies. I'd like it to sound absurd and funny.'