Crystal Dynamics instead of Warhorse – The 100 million project for “Lord of the Rings” is taking shape

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Mark Tomson
Managing Director of PlayFront. Mark Tomson shapes the vision of independent PlayStation reporting. His focus: technical analysis, hardware evolution, and the strategic positioning of the gaming industry. He stands for...
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Insider update: Crystal Dynamics is the developer of the $100 million Lord of the Rings RPG. They are focusing on open-world gameplay and Unreal Engine 5 as a competitor to Hogwarts Legacy.

Contrary to recent speculation, Crystal Dynamics, not Warhorse Studios, is the developer behind the upcoming AAA role-playing game set in the "Lord of the Rings" universe. This was reported by Insider Gaming, citing sources close to the development. The project, positioned as a direct competitor to "Hogwarts Legacy," is still in its early stages.

The original messageReports that the Kingdom Come creators were working on the $100 million production have been revised. While Warhorse Studios may be working on its own concepts within the Embracer Group, Crystal Dynamics is responsible for the big-budget, Abu Dhabi Investment Office-funded open-world RPG.

The studio is currently very busy developing several Tomb Raider titles, which explains the release date being so far in the future.

Resource management at Crystal Dynamics

The choice of Crystal Dynamics is strategically interesting, but raises questions about capacity. The studio is currently working on two major projects in the Tomb Raider series:

  • Tomb Raider: Legacy of Atlantis: A remake of the original game, planned for 2026, based on Unreal Engine 5.
  • Tomb Raider: Catalyst: A sequel scheduled for 2027, taking place after the events of Underworld.

It is likely that production of the Middle-earth RPG will only ramp up significantly after the completion of "Tomb Raider: Legacy of Atlantis." The fact that Crystal Dynamics is using Unreal Engine 5 suggests that the "Lord of the Rings" project will also be based on this technology.

With Crystal Dynamics at the helm, expectations are shifting away from Warhorse Studios' hyper-realistic simulation approach towards a cinematic, action-oriented open world. The goal of competing with "Hogwarts Legacy" underscores the commercial focus: it's about mass appeal, technical polish, and a strong narrative – core competencies that Crystal Dynamics has already demonstrated with the Tomb Raider reboot trilogy.

For fans, this change signifies a shift in gameplay philosophy. Instead of complex survival and combat systems (like in Kingdom Come), the focus is likely to be on exploration, fluid action, and technically impressive presentation using Unreal Engine 5.

Since the game is still "some time" away from release, players should not expect any concrete material before 2028.

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Steven
1. April 2026 09: 15

🤣 This just goes to show why the Warhorse manager recently commented on DLSS5 and AI. They're waiting for tasks.
However, Warhorse has become incredibly bad with KCD2. Patches that didn't fix bugs but instead introduced new ones... perhaps it's a good thing they're discontinued.
I rather suspect that the expertise is gone anyway after KCD was completed.

pray
31. March 2026 23: 30

Oh man... I have to worry again that it'll never come out. If it does... you heard it from me first xD

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