Multiple unconfirmed reports indicate that two different studios under the Embracer Group umbrella may be developing separate video games set in J.R.R. Tolkien's Middle-earth. Neither Embracer Group nor the named studios have officially confirmed any projects.
Warhorse Studios Project
Warhorse Studios, the Czech developer of the Kingdom Come: Deliverance series, announced via social media that it is working on an open-world RPG set in Middle-earth. The company's announcement also mentioned a new Kingdom Come title.
Details regarding the Middle-earth project remain limited, with speculation suggesting the game may not be set during the events of The Lord of the Rings and could explore other parts of Tolkien's legendarium.
Additional reporting from industry sources indicates the project may be a third-person action role-playing game (RPG) with an immersive open-world design. Polish gaming journalist Ryszard Chojnowski stated on the Tolkien Polska podcast that he first heard the rumor through industry contacts months ago and has since received multiple corroborations.
This aligns with a September 2025 report from Insider Gaming, which detailed a new third-person open-world Lord of the Rings game. Sources at that time described it as a large-scale action RPG with partial funding of approximately $100 million, reportedly from the Abu Dhabi Investment Office (ADIO). Warhorse's prior experience with open-world RPGs, including Kingdom Come: Deliverance 2, and earlier job listings seeking expertise in Unreal Engine 5, have been cited as evidence of a potential new project.
Crystal Dynamics Project
A separate report from Insider Gaming indicates that Crystal Dynamics, another Embracer-owned studio, is also developing a The Lord of the Rings game. This would mark the studio's third game in development, alongside Tomb Raider: Legacy of Atlantis (2026) and Tomb Raider: Catalyst (2027).
The report states the game is being developed with financial support from the Abu Dhabi Investment Office and is aiming to "compete with Hogwarts Legacy", though the specific meaning of this objective is not detailed. Crystal Dynamics is said to be collaborating with developer Revenge on this project.
Ownership and Industry Context
Embracer Group holds the video game rights to The Lord of the Rings through its subsidiary Middle-earth Enterprises. The company stated in 2024 that it was prototyping multiple new ideas for games based on the franchise. Previously, Embracer's Lord of the Rings boss, Lee Guinchard, expressed a desire for a renaissance in Lord of the Rings games.
An Embracer spokesperson did not provide a comment when approached by Insider Gaming.
The Lord of the Rings franchise has a varied history in video games, including titles such as Monolith's Nemesis System series and The Lord of the Rings Online. Recent releases, including The Lord of the Rings: Gollum (2023) and Tales of the Shire, have received mixed responses. Following the release of Gollum, developer Daedalic canceled its next Lord of the Rings game and announced it would cease game development.
Status
All information regarding these projects remains unconfirmed by Embracer Group, Warhorse Studios, or Crystal Dynamics. Development for a game of this magnitude would likely span several years, potentially leading to a release in the late 2020s or early 2030s. Any official announcement from the studios or Embracer Group would likely occur after the post-launch support cycle for Kingdom Come: Deliverance 2 concludes.