Inside the Abu Dhabi-Backed Bid to Forge the Next Lord of the Rings Game
Middle-earth is gearing up for a colossal return: a brand-new Lord of the Rings video game is in development, backed by a roughly $100 million deal from Abu Dhabi Investment Office, according to InsiderGaming—one of the biggest bets on the franchise in years.
I did not have "Abu Dhabi bankrolls a massive new Lord of the Rings game" on my 2025 bingo card, but here we are. A fresh Middle-earth project is moving forward with serious money behind it, and the early chatter points to a true go-big-or-go-home swing after the whole Gollum situation.
The short version
InsiderGaming says Abu Dhabi Investment Office (ADIO) is funding a new Lord of the Rings video game to the tune of about $100 million. That is a huge number for this IP and one of the biggest Middle-earth spends we have seen in years. Given how Lord of the Rings: Gollum face-planted, it tracks that whoever is making the next one needed heavyweight backing to calm nerves.
Who is actually making it?
This part is messy, so here is the plain-English version. Embracer Group controls the rights to make LOTR video games. They picked up those rights in 2022 in a deal valued near $400 million, and for the last few years they have owned the gaming licenses. Historically, Embracer has not built these games itself; it hands the license to outside studios (Daedalic made Gollum, for example).
Now, reports say Embracer is involved on this new title alongside a studio called Revenge Studios, with ADIO providing the cash. None of that is official yet. When asked to clarify, both Embracer and Revenge basically said the standard line:
"We do not comment on rumors or speculation."
Unofficially, it sounds like the project could be split across multiple teams handling different pieces (world-building, combat, story, systems). That does not confirm anything, but it is how big-budget games often get done. With all these moving parts, do not be shocked if a formal announcement lands in the next few months.
- Money: ADIO is reportedly putting in around $100 million
- Rights: Embracer Group has held the LOTR game licenses since 2022 (roughly $400 million deal)
- Developers: Embracer and Revenge Studios are reported to be involved (neither is confirming)
- Track record: Embracer usually licenses out LOTR games; Daedalic made Gollum
- Scale: Positioned to rival Hogwarts Legacy, per an unnamed spokesperson
The target: Hogwarts Legacy-sized
The most eyebrow-raising claim here is the internal goalpost: an anonymous member of the dev side told InsiderGaming the new LOTR game is being built to compete directly with Hogwarts Legacy. That suggests a big, lore-heavy open world with exploration and story-driven progression. Think: a single massive adventure rather than a smaller, experimental spin-off. Expect plenty of nods and Easter eggs for film fans too, if they are going for broad appeal. The ADIO money absolutely makes that kind of scope more realistic.
Why now?
Because the brand needs a win. After Gollum flopped, anyone backing the next Middle-earth game would want assurances that production will not run out of steam. A $100 million war chest does not guarantee quality, but it shows a serious attempt to steady the ship and compete at the top end of the market.
When do we hear more?
Nothing is official yet, but with funding, rights, and rumored partners all swirling, a reveal could be getting teed up. If the current reporting holds, expect the marketing drumbeat to start sooner rather than later.