Amazon Cancels Lord of the Rings MMO

Amazon has reportedly cancelled its Lord of the Rings MMO, according to sources familiar with the project. The cancellation occurred shortly after layoffs in October 2023 affecting Amazon's Games division.

Background

Amazon announced a Lord of the Rings MMO in 2019 in partnership with Leyou Technologies. The project was cancelled two years later following Tencent's acquisition of Leyou in 2020.

In 2023, Amazon partnered with Embracer—owner of Middle-Earth Enterprises—to develop the Lord of the Rings MMO. Amazon Games Orange County, the studio behind New World, was leading development. New World is scheduled to go offline in January 2027.

Statements

"Our creative team continues to explore a compelling new game experience that does justice to Tolkien's world; we are working closely with Middle-earth Enterprises and remain excited about the IP."

Jeff Gattis, Amazon's head of games, did not confirm or deny the cancellation but stated the company is developing a "new game experience" set in the Lord of the Rings universe.

Layoffs and AI

Layoffs affected teams working on both games. Sources said 1,000 developers began transitioning from New World to the Lord of the Rings project months before the layoffs, and the project was entering pre-production when the cuts happened.

An internal memo from Steve Boom, Amazon's vice president of audio, Twitch, and games, said the layoffs resulted from halting a significant amount of first-party game development, especially related to MMOs.

Sources claimed the layoffs were due to an AI mandate introduced before the cuts, including development on an internal project called Project Trident, which reportedly relies heavily on generative AI.

"Great games are made by talented people and we think AI should expand what's possible."

Gattis denied that AI was the reason for role reductions, stating the changes were due to a "strategic shift in [Amazon's] business."