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Embracer's Warhorse Studios to develop game set in the world of Lord of the Rings

Published by Global Banking & Finance Review

Posted on May 20, 2026

2 min read

· Last updated: May 20, 2026

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Warhorse Studios to Develop Lord of the Rings Game in Middle-earth

Warhorse Studios Announces New Middle-earth RPG

By Vera Dvorakova

May 20 (Reuters) - Warhorse Studios, owned by video game group Embracer, is developing an open-world role-playing game set in the world of the Lord of the Rings, Embracer's chief executive said on Wednesday.

Setting and Development Details

The game will be set in the fictional world of Middle-earth, CEO Phil Rogers said in a post-earnings call.

Studio and Leadership Reactions

"Just thinking about one of the biggest and most beloved IPs in the world being developed here in Prague is honestly mind-blowing," Warhorse Studios' communications director Tobias Stolz-Zwilling said in a LinkedIn post.

Other Projects by Warhorse Studios

The Czechia-based studio is also working on another game in its Kingdom Come: Deliverance franchise, Rogers said.

Success of Kingdom Come: Deliverance Franchise

The franchise's previous title, "Kingdom Come: Deliverance II", won a BAFTA game award for best narrative and PC Gamer magazine's Game of the Year for 2025. Its sales surpassed 5 million copies within the first year of release, Embracer said in its third-quarter report in February.

Future Plans and Corporate Strategy

Rogers did not specify a development timeline for either of the games. Warhorse Studios declined to comment when contacted by Reuters.

Embracer said on Wednesday it was planning one more spin-off after last year's three-way split.

Fellowship Entertainment and Embracer's Flagship IPs

Kingdom Come: Deliverance, together with Embracer's other flagship IPs like the Lord of the Rings, will become a part of the newly formed Fellowship Entertainment, set to be listed in Stockholm in 2027.

(Reporting by Vera Dvorakova in Gdansk; editing by Milla Nissi-Prussak)

Key Takeaways

  • Warhorse Studios to develop a Lord of the Rings open‑world RPG set in Middle‑earth, announced by CEO Phil Rogers on May 20, 2026
  • Kingdom Come: Deliverance II has exceeded 5 million sales within its first year and earned PC Gamer’s Game of the Year for 2025, demonstrating strong momentum for the studio’s projects
  • Embracer plans to spin off its IP‑focused unit, Fellowship Entertainment—housing Warhorse and other major studios—into a separately listed company on Nasdaq Stockholm in 2027

Frequently Asked Questions

What game is Warhorse Studios developing with Embracer?
Warhorse Studios is developing an open-world role-playing game set in the world of the Lord of the Rings.
Where is Warhorse Studios based?
Warhorse Studios is based in Prague, Czechia.
What other projects is Warhorse Studios working on?
Warhorse Studios is also working on a new Kingdom Come: Deliverance game.
When will Fellowship Entertainment be listed?
Fellowship Entertainment, including Lord of the Rings IPs, is set to be listed in Stockholm in 2027.
How successful was Kingdom Come: Deliverance II?
Kingdom Come: Deliverance II won a BAFTA game award and surpassed 5 million copies sold in its first year.

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