Amazon cancels The Lord of the Rings MMO, but is working on new game experiences

Amazon has confirmed that it has canceled its plans for an MMO set in the world of The Lord of the Rings. This follows major layoffs at the company in October 2025, when around 14,000 employees lost their jobs, including many staff from Amazon Game Studios. The decision to stop work on the MMO is a response to those layoffs and a broader restructuring within the studio, with the company now focusing on other projects in the games industry.

History of the project

The MMO was announced in May 2023. The game was being developed in partnership with Embracer Group, which holds the rights to the IP. The project was still in an early stage of development and only entered pre-production in late 2025. According to sources, the team had been working on it for years with just a handful of people as a side project, without a full development team.

In October 2025, ahead of the upcoming layoffs, there was an attempt to move more developers from New World over to the The Lord of the Rings MMO team. It appears that move came too late to save the project.

Reason behind the cancellation

The MMO’s cancellation was partly driven by the layoffs mentioned above and a sharp narrowing of development efforts within Amazon Game Studios. Many employees said they were excited about creating the MMO, with individual contributions that they hoped would strengthen the IP. However, the restructuring led to the loss of most of the resources, and the project lost momentum.

Reports also suggest that only one piece of concept art had been created before the project was shut down. That likely influenced Amazon’s decision to shift toward other projects with a better chance of success.

Future developments

Despite the MMO’s cancellation, Amazon Games says it is still interested in developing a new game experience that does justice to J.R.R. Tolkien’s world. Jeff Grattis, head of Amazon Game Studios, has said the creative teams are continuing to work on potentially promising ideas for a new game set in Middle-earth.

Rumors suggest that other developers such as Warhorse Studios and Crystal Dynamics are also working on different projects in the world of The Lord of the Rings. Warhorse is known for Kingdom Come: Deliverance, while Crystal Dynamics has recently been working with Amazon on new Tomb Raider projects.

Conclusion

The cancellation of The Lord of the Rings MMO marks a major shift in Amazon Game Studios’ strategy. While the company has reconsidered its current direction, the potential for new game experiences in Middle-earth remains. With the franchise’s strong popularity and upcoming films on the horizon, there is room for a possible renaissance for gaming in this iconic universe.