New AAA LORD OF THE RINGS Game Reportedly in Development at Crystal Dynamics
Middle-earth might be gearing up for a serious comeback in the AAA gaming space. A new report suggests that a major Lord of the Rings title is in development, and if the details hold up, it could be aiming for the kind of massive appeal fans have been waiting for.
According to Insider Gaming, Crystal Dynamics is reportedly working on a brand-new Lord of the Rings video game. There’s barely anything concrete about the gameplay or story yet, but sources claim the project is being backed by the Abu Dhabi Investment Office and is being designed to “compete with Hogwarts Legacy.”
That comparison gives us a pretty clear picture of scale. Despite mixed critical reception, Hogwarts Legacy turned into a monster hit, moving over 40 million copies as of December 2025 and giving players a sprawling world to explore inside a beloved universe.
If that’s the bar, then this rumored Middle-earth project isn’t aiming small.
What’s new here is Crystal Dynamics’ involvement. The studio, best known for the Tomb Raider reboot trilogy, is reportedly juggling this alongside two other major titles: Tomb Raider: Legacy of Atlantis and Tomb Raider: Catalyst.
With that workload, it’s no surprise the report says the Lord of the Rings game is still “a bit away.” There’s no release window yet, but it doesn’t sound like something we’ll be seeing anytime soon.
There’s also some confusion floating around thanks to a separate rumor. Polish industry veteran Ryszard Chojnowski recently suggested that Warhorse Studios, the team behind Kingdom Come: Deliverance, is also developing a Lord of the Rings game.
Since Embracer Group owns both Warhorse and the Tolkien IP, that idea actually tracks. Still, Insider Gaming’s sources say that if Warhorse is working on something in that universe, it’s not connected to Crystal Dynamics’ project. So we could be looking at two entirely different Middle-earth games in development.
That might sound exciting, but there’s some understandable hesitation. Crystal Dynamics hasn’t had the smoothest ride lately. Marvel’s Avengers didn’t land the way anyone hoped, and even publisher Square Enix later admitted it wasn’t the right fit for the studio.
Since then, the developer has gone through multiple rounds of layoffs, with the latest cuts happening in March 2026. Balancing three large-scale projects under those conditions raises questions about bandwidth and focus.
And it’s not just the studio that has something to prove. The Lord of the Rings gaming track record in recent years has been rough. The Lord of the Rings: Gollum was heavily criticized and ended up shutting down Daedalic Entertainment’s development division.
Tales of the Shire: A The Lord of the Rings Game and The Lord of the Rings: Return to Moria didn’t fare much better, landing somewhere between underwhelming and forgettable. Even an MMORPG from Amazon Games reportedly got scrapped before it could see the light of day.
That’s a far cry from the glory days of Monolith Productions’ Middle-earth series. Those games, especially Middle-earth: Shadow of Mordor and Middle-earth: Shadow of War, delivered fast-paced combat inspired by the Batman: Arkham games and introduced the Nemesis system, which made enemies feel reactive. Even Shadow of War, which caught heat at launch for its microtransactions, has gained more appreciation over time after those elements were removed.
Right now, this rumored Crystal Dynamics project is still shrouded in mystery, but the ambition behind it is clear. If it really is chasing the scale and immersion of Hogwarts Legacy, then it could mark a major turning point for Lord of the Rings games.