Amazon has cancelled The Lord of the Rings MMO, but promises it “continues to explore a compelling new game experience” set in Middle-earth

Amazon Games has officially cancelled its Lord of the Rings MMO, a project first announced in 2019. The cancellation occurred in October 2025 following significant layoffs at the company’s Games division.

While initially unconfirmed, Jeff Grattis, head of Amazon Games, effectively acknowledged the project’s end by stating the team “continues to explore a compelling new game experience that does justice to Tolkien’s world” in collaboration with Middle-earth Enterprises. The MMO suffered from severe resource constraints, operating with just a handful of core developers for an extended period before additional staff from the New World project were reallocated to it.

The cancellation is part of a broader restructuring at Amazon Games tied to the company’s strategic push toward generative AI. Reports indicate Amazon directed development teams toward AI-focused projects while simultaneously laying off those same developers, raising questions about the company’s gaming strategy and decision-making processes.

Despite the MMO’s failure, Amazon remains committed to the Lord of the Rings franchise. The company continues working with Middle-earth Enterprises on an unspecified new “game experience,” though specific details about genre, scope, or timeline remain undisclosed.

Amazon has cancelled The Lord of the Rings MMO, but promises it “continues to explore a compelling new game experience” set in Middle-earth

Sources