New ‘Lord of the Rings’ Action Game Reportedly in Early Development, Aiming for Third-Person Adventure

A new Lord of the Rings video game is reportedly in early development, and insiders say it has been in the works for a while.

According to Insider Gaming, the project is expected to receive partial funding from the Abu Dhabi Investment Office (ADIO), with the amount around $100 million. While the deal is not finalized, sources suggest it could become official soon, possibly as early as next week. Until then, the game’s development has been covered internally.

Details about the new title are scarce, but sources revealed it will be a third-person action game.

One source added that it aims to “compete with Hogwarts Legacy,” signaling a focus on immersive adventure and combat. Multiple companies are said to be involved in the project, including Embracer and Revenge, among others. Embracer has owned the rights to the Lord of the Rings intellectual property for video games since 2022, after purchasing them for nearly $400 million.

The company has licensed these rights to other studios, including for the controversial Lord of the Rings: Gollum game.

When asked for comment, Embracer said, “a general rule, we do not comment on rumors or speculation.” Revenge, another studio reported to be involved, also declined to comment, describing the news as “rumor and speculation.”

The Lord of the Rings franchise has a long history in gaming. Titles have ranged from strategy games like The Lord of the Rings: The Battle for Middle-earth to action RPGs such as The Lord of the Rings Online.

Fans have experienced Middle-earth in many forms, from cinematic adaptations to creative reinterpretations. While some games have been praised, others, like Gollum, received mixed or negative reviews, making this new project highly anticipated.

This upcoming game represents a major effort to bring a fresh take to Middle-earth for modern audiences. With strong funding and multiple studios involved, it could become one of the more ambitious entries in the franchise.

A new Lord of the Rings game could be a real chance to deliver a high-quality adventure that fans have been waiting for, especially after mixed results from recent adaptations. The Middle-earth universe has so much potential for engaging stories, and a well-made third-person action game could finally capture its magic.

What do you think about this new Lord of the Rings game? Are you excited to explore Middle-earth again? Share your thoughts in the comments.