New ‘The Lord of the Rings’ RPG in Development at Crystal Dynamics

There were rumors of a new The Lord of the Rings game in development late in 2025, but not much else was known about it other than that it had a sizeable budget of around $100 million and was to compete with Hogwarts Legacy when it came to game design and mechanics. Now, Insider Gaming has reported that the new The Lord of the Rings game is being developed by Crystal Dynamics, not Warhorse Studios, although the report claims that there may be another LOTR game in development at Warhorse.

The game said to be in development at Crystal Dynamics is a third-person action RPG that was claimed to be funded by the Abu Dhabi Investment Office, and it has already been in development for a while. Neither Crystal Dynamics nor Embracer Group have confirmed that the game is in development, but it may be welcome news to The Lord of the Rings fans that were looking forward to the Lord of the Rings MMO that Amazon recently cancelled.