This is the caterpillar of the Pink Underwing Moth and is commonly referred to as the Skull Caterpillar. It is found in certain regions of Australia and is listed as endangered. As an adult moth, it will have a wingspan up to 170 mm.
Rayman 4 (Canceled game) Concept Art
How could they cancel this game for the raving rabbids?! HOWW?! I wanna see it back on the PS4 or something ya know?