New Lord of the Rings Game in Development to Rival Hogwarts Legacy

Fantasy fans, assemble. Word on the wind is that Middle-earth is gearing up for a comeback in the gaming world. But this is not your average “movie tie-in” or nostalgia cash-in. According to insiders, a brand new Lord of the Rings game is in development and it’s being positioned as a contender to Hogwarts Legacy. That is a bold move.

Behind the scenes, the project is said to be a third-person action game. That means you won’t just observe or read; you’ll wade into the mess of battle, trek through wild lands, engage enemies, explore ruins, and (one hopes) unlock magic, forging your own path across Middle-earth. It’s a design direction that suggests action, exploration, and story all riding together.

But the spice of the rumor is this: it’s allegedly backed in part by the Abu Dhabi Investment Office (ADIO), with a reported budget around 100 million USD. If true, that level of funding signals serious ambition. Embracer, the company that currently holds Lord of the Rings game rights, is said to be involved. The studio Revenge is also named in the whispers. That gives the project some weight, though none of these parties have confirmed anything.

What does “compete with Hogwarts Legacy” really mean in practice? Hogwarts Legacy set a high bar: wide open worlds, meaningful choices, varied magic systems, and a sense of wonder in exploring a beloved lore. So for LOTR to aim at that, this new game would need to deliver exploration, lore depth, player agency, and a living world, not just linear walks through famous locations. Imagine roaming the Shire, wandering paths through Fangorn or Mirkwood, discovering hidden dungeons or ruins, and battling orcs, trolls, or uncanny foes. The potential is enormous.

The timing is interesting. Lord of the Rings games in recent memory have not always landed. The Lord of the Rings: Gollum, for example, had a notoriously rough launch. Tales of the Shire got mixed reviews. Fans have long lamented that Middle-earth has not yet gotten a game with the scale and polish of big fantasy RPGs. This project could be the answer to that call.

Still, many blanks remain. We don’t know the story or setting. Will it be in the Third Age, Second Age, after the War of the Ring, or even a new age altogether? Will your character be original, or will you play someone known from Tolkien lore? What mechanics will shape exploration, combat, companions, and magic? And of course, we don’t know when it might release or even whether this is more of a concept than a game in active development.

But the signs are tantalizing. If a Lord of the Rings game can match Hogwarts Legacy’s sense of space, story, and wonder, with the added weight of Tolkien lore, it could rekindle excitement for fantasy gaming. Even the rumor alone has fan forums buzzing with what they’d want: open hills to traverse, hidden caves, ancient trees to climb, specters in dark forests, magic intertwined with nature.

So gear up your imagination. If this new LOTR game is real, it has the potential to shift how we think about Middle-earth in games. And if it succeeds, the journey could feel familiar and brand new at the same time. Keep your eyes on the horizon, the fellowship of rumors has begun.