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Amazon cancels Lord of the Rings MMO after years of setbacks

Yesterday 07:37
By: Dakir Madiha
Amazon cancels Lord of the Rings MMO after years of setbacks

Amazon Games has confirmed the cancellation of its long troubled massively multiplayer online game based on the world of The Lord of the Rings, ending another major attempt to build a large scale online experience around one of fantasy’s most valuable franchises. Company executive Jeff Grattis said the studio continues exploring other game concepts tied to Tolkien’s universe and remains committed to the Middle-earth license despite abandoning the MMO project.

The cancellation closes a turbulent development cycle that stretched across several years and multiple restructurings. Amazon first announced the MMO in 2019 as part of a partnership involving Leyou Technologies. The project collapsed in 2021 after ownership disputes emerged following Tencent’s acquisition of Leyou. Amazon later revived the concept internally in 2023, assigning development responsibilities to Amazon Games Orange County, the studio behind New World.

The rebooted version entered pre production before broader cost cutting measures hit Amazon’s gaming division in late 2025. Internal restructuring led to significant layoffs across several teams, including studios in Irvine and San Diego. Executives informed employees that the company planned to scale back much of its internal AAA game development focused on MMO titles. Former developers later confirmed publicly that the Lord of the Rings project had been affected directly by the cuts.

The cancellation reflects a wider strategic retreat from large scale multiplayer development inside Amazon Games. New World, once positioned as the company’s flagship online title, shifted into maintenance mode after the layoffs and is expected to shut down in 2026. Amazon said it will continue supporting externally developed online games including Lost Ark and Throne and Liberty while also focusing on publishing partnerships and single player projects.

Despite the MMO cancellation, Middle-earth gaming projects remain active elsewhere in the industry. Embracer Group, which acquired gaming rights tied to The Lord of the Rings and The Hobbit in 2022, previously confirmed that several new titles are in development across its studios. Companies including Crystal Dynamics and Warhorse Studios are among the teams connected to future projects based on Tolkien’s universe, suggesting the franchise will remain a major focus for the gaming industry despite Amazon’s withdrawal from the MMO space.

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