Crystal Dynamics Reportedly Developing New Lord of the Rings Game

According to an exclusive report from Insider Gaming, Crystal Dynamics is developing a new Lord of the Rings game. The studio, best known for the Tomb Raider reboot trilogy, is reportedly working on the project alongside its current Tomb Raider titles.

This follows earlier rumors that placed a major Middle-earth project at Warhorse Studios, the team behind Kingdom Come: Deliverance. Sources indicate that the Crystal Dynamics game has received roughly 100 million dollars in funding from the Abu Dhabi Investment Office (ADIO). It has been in development for some time but remains a bit away from release or a formal announcement.

Neither Crystal Dynamics nor Embracer Group has officially confirmed the project. Both declined to comment when approached by Insider Gaming.

Embracer Group acquired Middle-earth Enterprises in 2022 for approximately 395 million dollars. This purchase gave the company broad rights to develop games, films, and merchandise based on J.R.R. Tolkien's literary works for The Lord of the Rings and The Hobbit, outside existing Warner Bros. agreements tied to the Peter Jackson films.

What We Know So Far#

Very few details about the reported Crystal Dynamics project are available. Sources describe it as a third-person action title aiming for a scale similar to Hogwarts Legacy. No information has been released about the exact genre, specific setting within Middle-earth, story, release window, or target platforms.

Crystal Dynamics has strong experience with third-person action-adventure games that emphasize exploration, traversal, and narrative. Fans have speculated that these skills could suit a Lord of the Rings setting, though any such ideas remain purely hypothetical at this stage.

The studio most recently released Marvel's Avengers, a live-service game that received mixed feedback for its combat but criticism for repetitive missions and endgame design. Crystal Dynamics is currently working on two new Tomb Raider games in partnership with Amazon Games: Tomb Raider: Legacy of Atlantis (a modern reimagining of the 1996 original, planned for 2026) and Tomb Raider: Catalyst (a new mainline entry set for 2027). Both titles use Unreal Engine 5.

Handling multiple large projects at once points to studio growth or staggered development timelines.

Multiple Middle-earth Projects Rumored#

Rumors suggest Embracer may be exploring more than one Lord of the Rings game across its studios. While Insider Gaming identified Crystal Dynamics as the lead on the ADIO-funded project, some earlier reports and industry whispers mentioned Warhorse Studios in connection with a separate Middle-earth title.

Warhorse Studios demonstrated skill with historically grounded, systems-driven RPGs in Kingdom Come: Deliverance. A Lord of the Rings project from that team could potentially emphasize grounded medieval elements of Tolkien's world, though this also remains unconfirmed.

Embracer's ownership of the broader literary rights opens possibilities for stories set beyond the Third Age events of the main novels, such as events from the First or Second Age or material from the appendices. This differs from earlier licensed games that were more closely tied to the films.

The timing coincides with continued interest in Middle-earth through Amazon's The Rings of Power series and other developing film projects.

No official announcements or gameplay details have surfaced for any new Lord of the Rings game from Embracer studios. All current information comes from industry rumors and leaks.

What kind of Lord of the Rings game would interest you most from a studio like Crystal Dynamics? A focused narrative adventure, a large-scale exploration experience, or something else that builds on their past work?