Amazon Games has quietly shelved its ambitious Lord of the Rings MMO project, marking the company’s second failed attempt to bring Middle-earth to life in just four years. The cancellation surfaced this week after a former developer broke the news on LinkedIn, revealing that the project was axed alongside massive layoffs that gutted the studio’s MMO division.
The LinkedIn Post That Confirmed Everything
Ashleigh Amrine, a former senior gameplay engineer at Amazon Games, shared the devastating news in a LinkedIn post that has since been deleted. She wrote that she was part of the layoffs affecting Amazon Games, alongside colleagues working on New World and what she described as their “fledgling Lord of the Rings game.” The kicker? She added that fans “would have loved it,” suggesting the project showed real promise before getting the axe.
While Amazon hasn’t officially confirmed the cancellation, the writing on the wall is pretty clear. The company announced this week that it’s cutting back on a “substantial” portion of its MMO development work. Bloomberg reported that the cuts hit especially hard at Amazon’s Irvine and San Diego offices, where much of the gaming work happens.
Part of a Bigger Bloodbath
The Lord of the Rings MMO didn’t die alone. Amazon announced layoffs affecting approximately 14,000 employees across the entire company, with significant cuts targeting the video game division. The most visible casualty is New World, Amazon’s colonial fantasy MMO that launched in 2021. Despite maintaining a respectable player count of 50,000 to 60,000 concurrent players, Amazon announced it would stop creating new content for the game.
New World’s Season 10 and Nighthaven update will serve as its final content release. Amazon says servers will stay online through 2026, giving players time to wrap up their adventures in Aeternum. But make no mistake, the game is essentially in maintenance mode now. The company will continue supporting two published MMOs, Throne and Liberty and Lost Ark, but those are developed by other studios.
Amazon’s Rocky History With Middle-earth
If this story sounds familiar, that’s because Amazon has been down this road before. Back in 2019, the company announced its first Lord of the Rings MMO in partnership with Leyou. That project crashed and burned in 2021 after Tencent acquired Leyou, leading to a messy contractual dispute that killed the deal.
Two years later in 2023, Amazon tried again. This time, they partnered with Embracer Group, the Swedish gaming conglomerate that owns Middle-earth Enterprises. Embracer acquired the rights to Lord of the Rings and The Hobbit in 2022 for $395 million, far less than the estimated $2 billion valuation. The new partnership was supposed to deliver a “persistent open-world MMO adventure” spanning events from The Hobbit through the Lord of the Rings trilogy.
But the project apparently struggled to find its footing. Last August, Amazon Games VP Christoph Hartmann admitted the team was having trouble finding the right “hook” to make their version stand out. He pointed out that The Lord of the Rings Online, which launched way back in 2007 and still gets regular updates, already fills the traditional MMO space for Tolkien fans.
Why MMOs Keep Failing at Amazon
Amazon’s retreat from MMO development isn’t just about Lord of the Rings. Hartmann previously acknowledged that MMOs are incredibly tough to pull off. They’re expensive to develop, require constant content updates to keep players engaged, and face brutal competition in an already crowded market. Even with Amazon’s deep pockets, the risk-reward calculation apparently didn’t add up.
The challenge is finding something fresh in a genre that’s been around for decades. World of Warcraft still dominates the fantasy MMO space. Final Fantasy XIV has its dedicated fanbase. Even niche titles like The Lord of the Rings Online maintain loyal communities. Breaking into this market requires more than just a recognizable IP and a massive budget. You need a genuinely compelling reason for players to invest hundreds of hours into your world instead of the ones they’re already comfortable in.
What This Means for Middle-earth Gaming
The cancellation leaves a noticeable gap in the Lord of the Rings gaming landscape. Recent years have seen a disappointing lack of quality titles based on one of the biggest franchises in entertainment. The last major release was Middle-earth: Shadow of War back in 2017, and that’s now eight years old. Fans hoping for a modern, triple-A Lord of the Rings experience will have to keep waiting.
Embracer still owns the rights, so other developers could potentially take a crack at Middle-earth. But Embracer itself has been going through major restructuring, selling off studios and canceling projects to cut costs. Whether they’ll find another partner willing to tackle an MMO remains to be seen.
FAQs
Is Amazon’s Lord of the Rings MMO officially cancelled?
Amazon hasn’t made an official announcement, but a former developer confirmed the project was cancelled as part of recent layoffs. The game is no longer in active development and the team has been laid off.
How many times has Amazon tried to make a Lord of the Rings MMO?
Twice. The first attempt was announced in 2019 with partner Leyou but was cancelled in 2021 after Tencent acquired Leyou. The second attempt was announced in 2023 with Embracer Group and has now been cancelled in 2025.
Why did Amazon cancel the Lord of the Rings MMO?
The cancellation appears tied to Amazon’s decision to drastically scale back MMO development as part of company-wide cost cutting. The company is laying off 14,000 employees and ending development on its existing MMO, New World.
Will there be any new Lord of the Rings video games?
There’s no confirmed Lord of the Rings games in development from major studios right now. Embracer Group owns the rights but hasn’t announced any new gaming projects. The Lord of the Rings Online from 2007 continues to receive updates.
What happened to Amazon’s New World game?
Amazon announced it’s ending new content development for New World. The game will remain online through 2026, but Season 10 and the Nighthaven update are the final content releases. The game is essentially in maintenance mode.
Who owns the rights to make Lord of the Rings games now?
Embracer Group owns the rights to Lord of the Rings and The Hobbit video games, having purchased Middle-earth Enterprises for $395 million in 2022. They can license these rights to other developers.
How many people were laid off at Amazon Games?
Amazon announced layoffs affecting approximately 14,000 employees across the company. Significant cuts hit the gaming division, particularly affecting the Irvine and San Diego offices where Amazon Games is based.
The Bottom Line
Amazon’s second failed attempt at a Lord of the Rings MMO shows that even unlimited resources can’t guarantee success in game development. The cancellation leaves fans disappointed and raises questions about whether we’ll see a major new Middle-earth game anytime soon. For the developers who lost their jobs, it’s a harsh reminder of how brutal the gaming industry can be, even when you’re working on beloved franchises at one of the world’s biggest companies. The dream of exploring Middle-earth in a modern MMO will have to wait for another day, and possibly another developer willing to take the risk.