Competition for Hogwarts Legacy: New Lord of the Rings game on the way

In the gaming industry, the Lord of the Rings license is seen as a double-edged sword. Successful titles like Middle-earth: Shadow of War have shown the immense potential of the brand – delivering both strong sales and excitement in the community. But when a game fails to live up to the source material, sentiment can quickly swing the other way. A prime example is The Lord of the Rings: Gollum, whose disastrous launch ultimately led developer Daedalic Entertainment to abandon in-house game development altogether. Nearly eight years have passed since the release of Shadow of War – and fans are hungrier than ever for new adventures in Middle-earth.

The rights to develop Lord of the Rings games have been held by the Embracer Group since 2022, and according to Insider Gaming, the company is working on a new adaptation of Tolkien’s world. So far, the project has been funded internally, but the Abu Dhabi Investment Office (ADIO) is reportedly set to step in as the main financial partner with an investment of around $100 million. While the deal hasn’t been finalized, anonymous sources suggest it could be completed within days. Alongside unnamed studios, the development team at Revenge is also said to be involved.

The game is expected to be a third-person action title, aiming for a scale and atmosphere similar to Hogwarts Legacy – one of the most successful licensed games in recent years. However, details about the setting, storyline or release window are still unknown. Both the Embracer Group and Revenge declined to comment, citing their policy of not responding to speculation.

Mixed reactions from the community

The leak has sparked lively debate on Reddit. Many fans are excited, hoping for an epic action RPG in the style of Shadow of War. The comparison to Hogwarts Legacy has also fueled interest, with one user simply commenting: “You have my attention.” Others remain more cautious, with Embracer’s involvement drawing particular criticism. Many still blame the company for the Gollum fiasco and fear another misstep. Potential funding from the Abu Dhabi Investment Office has also raised concerns, with some users labeling the investment as “blood money” and even urging a boycott.

It remains unclear when more details about the upcoming Lord of the Rings game will be revealed. Still, the Insider Gaming report has already sparked significant interest within the community. A key factor shaping fan expectations will likely be which studio takes the lead on the project – a detail that could determine whether the game is met with excitement or concern.