A major new video game adapting The Lord of the Rings is reportedly in development, with multiple parties including Embracer Group (under the Middle-earth Enterprises banner), and the Abu Dhabi Investment Office (ADIO) reportedly involved.
The report comes from Insider Gaming, which outlined significant ambitions for the upcoming project. It’s reportedly aiming to compete with Hogwarts Legacy in scale and design, suggesting it could be a third-person open world action game of sorts, with players able to explore Middle-earth widely.
At this stage, these details remain speculative, as Insider Gaming reports an exact deal has not been locked in just yet. It’s believed a partial funding deal by the ADIO, estimated to be worth USD $100 million, is yet to be signed due to a ‘number of moving parts,’ although it’s speculated the deal could be made ‘soon,’ and announced shortly.
Insider Gaming believes this project is a significant one, and it will seemingly follow on from Embracer Group’s ambitions to create new Lord of the Rings projects that expand the franchise’s beloved universe. These ambitions, however, are tempered by a string of recent failures that have somewhat tarnished the excitement around what could be in the works.
Embracer’s LOTR adaptation woes began with the arrival of The Lord of the Rings: Gollum from Daedalic Entertainment. The game arrived so broken and buggy that it became a near-instant joke, and was widely regarded as one of the worst video games of 2023. While it wasn’t outright irredeemable, it was a clear misstep, and inspired plenty of doubt about future Lord of the Rings adaptations.
The Wētā Workshop-made Tales of the Shire which followed in 2025 was a slight improvement, with lovely, cosy gameplay elevating a lack of polish. But even this was poorly received in the mainstream, adding to a growing perception of difficulty in adapting The Lord of the Rings to the world of video games.
Regardless of these releases, it does seem Embracer Group remains set on developing new, more ambitious Lord of the Rings adaptations, emboldened by the critical and commercial success of Hogwarts Legacy, which adapted the Harry Potter franchise.
For now, Embracer Group has refused to comment on rumour and speculation, and it has not specifically confirmed the existence of this upcoming Lord of the Rings adaptation. But it’s certainly not outside the realm of possibility. When the company purchased the rights to adapt The Lord of the Rings way back in 2022, it did confirm ambitions to open up ‘more transmedia opportunities’ in future. This would certainly align with that goal.
We’ll just have to stay tuned to see whether this new Lord of the Rings game comes to fruition, and whether its biggest ambitions will be properly realised.
Also on ScreenHub: Electronic Arts acquired by Saudi PIF, Silver Lake, and Affinity Partners for USD $55 billion
Electronic Arts (EA) has been acquired for USD $55 billion in a major deal led by a consortium of investors, including the Saudi Arabian Public Investment Fund (PIF), Silver Lake, and Affinity Partners (the investment firm led by US President Donald Trump’s son-in-law, Jared Kushner). As part of the deal, the company is set to become private, and shareholders will be paid out at USD $210 per share in cash.
Andrew Wilson will remain CEO of EA, and the company has pledged to maintain its ‘values and [its] commitment to players and fans around the world’ regardless of this transaction. ‘We are entering a new era of opportunity,’ Wilson said in a statement to investors. ‘This is one of the largest and most significant investments ever made in the entertainment industry.’