The Lord of the Rings MMO Reportedly Cancelled by Amazon Games

Amazon Games has reportedly cancelled its long-running effort to develop a new The Lord of the Rings MMO, according to multiple industry sources. The decision comes amid sweeping layoffs and a strategic shift within the division toward smaller-scale titles.

The game, which had been in development under the Embracer Group and the Tolkien-rights holder Middle‑earth Enterprises, represented Amazon’s second attempt to bring the Middle-earth franchise to a massive online multiplayer format. The first version was cancelled in 2021 when licensing and acquisition issues made progress untenable.

Earlier versions of the game were tied to the 2019 announcement of a collaborative project with Leyou Technologies and later adjustments following the acquisition of Leyou by Tencent Holdings disrupted contract terms and triggered cancellation. More recently a revival effort emerged in partnership with the Embracer Group but now appears to have been shelved amid broader studio restructuring.

The reported cancellation aligns with Amazon Games’ recent memo acknowledging a halt on “first-party AAA MMO” development. The studio confirmed thousands of layoffs and a refocus toward cloud gaming via its Amazon Luna platform, emphasizing casual and AI-driven titles. The change in strategy indicates a retreat from high-budget live-service experiences and likely influenced the decision to discontinue the Lord of the Rings MMO.

While Amazon has not publicly confirmed the termination of this specific project, a senior developer posted on LinkedIn that they were laid off alongside a “fledgling Lord of the Rings game.” That personnel disclosure suggests the project is no longer moving forward in its intended form. The studio will continue to support externally developed MMOs such as Lost Ark and Throne & Liberty but appears to be pausing or cancelling in-house major MMO construction.

This news will likely reverberate through the gaming community and among fans of the Tolkien franchise, which has seen multiple video-game iterations over the decades. Earlier announcements pointed to the MMO being set in Middle-earth and possibly exploring new time periods beyond the original trilogy, but none of those aspects were publicly finalized.

Looking ahead, Amazon Games is expected to outline further details about its restructured game portfolio and future priorities. For fans of Middle-earth video gaming, attention will now shift to other licensees and developers. Meanwhile, Amazon may issue a formal statement regarding the cancelled project and any potential redeployment of assets or team members.