The Lord of the Rings may soon get a blockbuster video game revival, with reports of a large-scale RPG in development that could rival the success of Hogwarts Legacy.
A Major New RPG in the Works
A new third-person Lord of the Rings role-playing game is said to be deep in development, according to industry reporting. Sources suggest that the project is designed to serve as the franchise’s answer to the hit Harry Potter spin-off, Hogwarts Legacy, which became one of the best-selling games of 2023.
Insider reports claim the game has been partially backed by the Abu Dhabi Investment Office with nearly $100 million in planned funding. The deal is said to be close to completion, with an official announcement expected in the coming weeks.
The project is reportedly a full-scale AAA game, one that could finally deliver the immersive Middle-earth experience fans have been waiting for.
Embracer’s Big Bet on Middle-earth
The news comes at a critical time for Embracer Group, which purchased the rights to develop and publish Lord of the Rings video games in 2022 in a deal worth nearly $400 million.
So far, that investment has not produced the hoped-for results. The Lord of the Rings: Gollum was widely panned upon release in 2023, while this year’s cozy-life simulator The Lord of the Rings: Tales of the Shire failed to win over a broader audience.
For Embracer, a large-scale RPG could represent a chance to reset the narrative. If successful, the project might become the flagship title that makes its acquisition of Middle-earth rights worthwhile.
Aiming to Match Hogwarts Legacy
The comparison to Hogwarts Legacy has drawn immediate attention. That title succeeded not by retelling J.K. Rowling’s original stories but by allowing players to live out their own adventures inside the Wizarding World.
If the Lord of the Rings RPG follows a similar path, it could invite players to step into iconic settings like Rivendell, Minas Tirith, or Mordor while carving out a new storyline within Tolkien’s universe. The promise of creating a fresh story while keeping the magic of Middle-earth intact is what has fans most intrigued.
Industry speculation suggests the game will focus on a third-person action RPG format, offering a mix of exploration, combat, and narrative choice. That design would put it in line with other successful fantasy RPGs, from The Witcher 3 to Horizon Forbidden West.
Who Is Making It?
What remains unclear is which studio is leading development. Reports have floated several names, including Embracer-owned divisions and a studio called Revenge, though no primary developer has been confirmed.
Both Embracer Group and Revenge were contacted about the project, but each declined to comment on what they called “rumor and speculation.” That silence leaves open questions about where the game is being made, who is overseeing it, and how far along production really is.
Still, the level of funding involved suggests this is not a small-scale experiment. An injection of $100 million in external backing indicates high expectations and global ambitions for the title.
High Hopes, High Risks
The video game industry is littered with ambitious projects that never made it to release, and even insiders caution that this Lord of the Rings RPG could face similar uncertainty. Development timelines for AAA games can stretch beyond five years, and market conditions often shift in ways that derail even well-funded projects.
However, the timing may work in the game’s favor. Fantasy role-playing titles continue to perform strongly, with Baldur’s Gate 3 recently winning Game of the Year and showing that there is a huge appetite for story-driven RPGs with deep worlds. A Lord of the Rings RPG with the right vision could ride that momentum.
For Tolkien fans, the allure of stepping directly into Middle-earth remains powerful. Whether it is exploring the Shire, battling orcs in the shadow of Mordor, or uncovering new corners of the lore, the franchise holds vast potential for interactive storytelling.
If this project moves forward, it could mark the most ambitious Lord of the Rings video game ever attempted.
The reported deal is not yet official, and many details remain hidden behind closed doors. But for fans of Tolkien’s world, even the possibility of such a project is enough to spark excitement and speculation about what Middle-earth adventures may lie ahead.
The question now is whether Embracer and its partners can deliver a game worthy of the Lord of the Rings name—or whether this will be another missed chance in the long history of Middle-earth video games.
