Kingdom Come developer Warhorse Studios confirms open-world Middle-earth RPG

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Following months of intense industry speculation and recent leaks, Warhorse Studios officially announced on Wednesday, May 20, 2026, that it is developing a massive open-world RPG set in J.R.R. Tolkien’s The Lord of the Rings universe.

Taking to X (formerly Twitter), the Czech developer confirmed the project alongside another major revelation: a brand-new entry in their critically acclaimed medieval franchise is also concurrently in production.

“You might have heard the rumours, it’s time to reveal what we are working on: An open world Middle-earth RPG [and] a new Kingdom Come adventure. We’re excited to tell you more when the time is right.”

What to expect from a Warhorse-Style Middle-earth

While the studio did not reveal specific plot points or a cinematic trailer, industry insiders and leaks offer a glimpse into the ambitious scale of the project:

• The Budget: Leaks published shortly after the announcement indicate that the Middle-earth RPG is operating with a massive $100 million budget.
• The “Nitty-Gritty” Approach: Known for the extreme historical realism and complex mechanics of Kingdom Come: Deliverance, the development team previously hinted that their future projects would remain true to their identity, promising a “nitty-gritty” RPG experience.
• Timeline Flexibility: By explicitly calling it a “Middle-earth RPG” rather than strictly The Lord of the Rings, speculation is high that the game may explore eras outside of the core War of the Ring narrative, capitalizing on the vast lore of the Second or Third Ages.

Embracer group restructures around “Fellowship Entertainment”

The game’s formal reveal coincided with a massive corporate restructuring announcement from parent company Embracer Group.

Embracer is spinning off its premium IP and AAA development pipeline into a new public entity called Fellowship Entertainment, which is slated for an independent Nasdaq listing in 2027. This new segment will directly oversee some of gaming’s most valuable IPs:

• The Lord of the Rings and The Hobbit (via Middle-earth Enterprises)
• Tomb Raider
• Kingdom Come: Deliverance
• Metro
• Dead Island

By placing Warhorse Studios directly under the Fellowship Entertainment banner alongside the Tolkien licensing rights, the corporate split provides the studio with frictionless, long-term creative access to the franchise.

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Amanda Torati

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Amanda Torati is a linguist and postgraduate researcher who specializes in the intersection of storytelling and interactive media. With a deep fascination for the gaming ecosystem, she focuses on deconstructing game narratives and technical trends to make them accessible to players of all levels. At ABWaves Game, Amanda combines her academic background with in-depth research to deliver reviews and guides that are both precise and engaging, ensuring readers stay informed in a fast-paced digital world.

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