The shadows are stirring in Middle-earth, and this time, the stakes are measured in nine figures. Following a string of mixed results for The Lord of the Rings in the gaming sphere, a massive new third-person action project has emerged from the depths of development with a singular goal: to do for Tolkien’s legendarium what Hogwarts Legacy did for the Wizarding World. According to recent industry reports, this unannounced AAA title has secured a staggering $100 million in partial funding from the Abu Dhabi Investment Office (ADIO), signaling a high-budget offensive intended to restore the franchise to its former interactive glory.
This ambitious pivot comes at a critical juncture for Embracer Group, the current gatekeepers of the Lord of the Rings gaming rights. After the widely publicized stumble of The Lord of the Rings: Gollum and the niche appeal of Tales of the Shire, the pressure is on to deliver a blockbuster experience that captures the cinematic scale of Peter Jackson’s trilogy. By positioning the project as a direct competitor to Hogwarts Legacy—which dominated the 2023 charts as the best-selling game in the US—the developers are clearly aiming for a sprawling, immersive experience that prioritizes world-building and high-fidelity action.
A Secret Alliance: Embracer, ADIO, and the Mystery of “Revenge”
While the project remains officially untitled, the “fellowship” behind its creation is beginning to take shape. The deal with ADIO, reportedly signed in late 2025, represents one of the most significant sovereign wealth investments in a single gaming IP to date. Alongside Embracer, the developer Revenge has been tipped as a primary player in the production. Although both companies have officially declined to comment on “rumors and speculation,” the scale of the investment suggests a massive workforce is already at work crafting a next-generation version of Middle-earth.
This “renaissance” for Tolkien games, as envisioned by Embracer’s leadership, is not happening in a vacuum. It is part of a broader, multi-platform strategy that includes an upcoming Middle-earth MMO from Amazon Games and the highly anticipated film The Lord of the Rings: The Hunt for Gollum, directed by Andy Serkis. By aligning the launch of a major third-person action game with these other high-profile releases, the goal is to create a cross-media ecosystem where Middle-earth is once again the dominant force in pop culture.
Learning from the Past to Secure the Future
To truly compete with a juggernaut like Hogwarts Legacy, the new project will need to recapture the magic of the “Golden Age” of Lord of the Rings gaming. Fans still speak in hushed, reverent tones about the early 2000s movie tie-ins and the more recent Shadow of Mordor series, which introduced the revolutionary Nemesis System. Those games succeeded because they understood the fundamental appeal of Tolkien’s world: the sense of overwhelming odds, the beauty of the landscape, and the visceral thrill of standing against the dark.
The upcoming title is expected to lean heavily into these elements, potentially offering a more open-ended exploration of Middle-earth than we have seen in years. Whether players will be stepping into the boots of a known hero or a custom-made protagonist remains the biggest mystery. However, with $100 million in the war chest and the benchmark of Hogwarts Legacy to beat, the journey back to Bag End is looking more promising than it has in a decade.
