New Lord of the Rings game in development that will rival Hogwarts Legacy

Middle-earth Enterprises is working on a new game that aims to do for Lord of the Rings what Hogwarts Legacy did for Harry Potter.

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A new Lord of the Rings video game is in development at the transforming Embracer Group, sources tell Insider Gaming. The production is said to be a third-person action game, but official details are light on whether or not RPG elements will be involved.

Stakeholders have big plans for the project, and hope that it can rival Hogwarts Legacy. This game may be separate from the Lord of the Rings MMO in development at Amazon Games.

"The deal has been in the works since last year, and, while not signed yet due to the number of moving parts, is said to be made official "soon" and could happen as early as next week. Regarding current funding of the game's development, it has been funded internally," the source said in a statement.

Reports indicate that the country of Abu Dhabi is investing into the project via its sovereign wealth fund. We've seen more countries invest directly into publishers and game projects over the years, especially Saudi Arabia, whose PIF just helped buy Electronic Arts for $55 billion.

Embracer Group is currently spinning off into three groups, one of which is Middle-earth Enterprises, a segment that will be devoted to the Lord of the Rings IP. Years ago in 2022, Embracer paid nearly $395 million to secure the exclusive rights for Lord of the Rings video games, TV shows, films, and merchandising.